Investment tactics – overview

We believe in statistical analysis and modern portfolio management. Rather then placing few well-picked bets, we distribute our bets to improve returns and reduce drawdown and risk of ruin.

Our investment tactics is focused on monthly rebalancing core account.
Within the core account, fixed allocation per asset class (adjusted based on rare macro events).
The rebalancing should occur at the end of each month based on performance indicators of the last 3 months in weekly and daily resolutions.
Within each asset class (US stock, International stock, alternative, high-yield) rotation between ~3-5 assets (1 per sector, typically ETFs) based on relative momentum and systemic risk (trend following)

The core account is accompanied by relatively large “cache” and “leveraged trading” allocations for market timing and hedging
The “leveraged trading” allocation provides hedging per specific commodity, or asset class and can be used for market timing.
The “cache” allocation consists of actual cache, low-risk etfs, forex positions, volatility and inflation positions and is used to balance systemic and monetary risks.
The model may include some “cherry-picked” stocks, and testing strategies both on paper and in trading.

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