We believe that world financial markets are closely interrelated, and that present and future market opportunities are best exploited through a broad global approach. Through the application of a global macroeconomic analysis, we identify and take advantage of secular and cyclical trends. Within these trends we apply strong discipline and risk management, and time our decisions using proprietary technical and sentiment analysis.
In order to achieve our investment goals our strategy is employed using the following steps:
Through an analysis of broad global macroeconomic trends we identify specific sectors with superior relative strength that we believe will outperform the general market. We then utilize a top-down fundamental approach to identify best of breed companies in those selected sectors. Specifically, we identify companies with superior management that are focused on achieving the best execution of their business plans in order to maximize shareholder value.
We believe that owning a large number of stocks spread across different sectors leads to over-diversification, thereby limiting performance and resulting in a portfolio that mirrors the broad indexes. Instead, through selective sector analysis and stock selection within those sectors, we are able to take advantage of bullish trends while avoiding those sectors we believe will under-perform the market.
Through active and attentive study of technical analysis and sentiment indicators we time our investment philosophy. We have in place various hedging techniques intended to limit risk with a goal toward neutral portfolio volatility.