Research Process

Process

My objective is to generate returns similar to an efficiently laddered perpetual long call option on equities. That is, a return stream that competes well on the upside, kicks in progressively over time, limits downside and doesn’t cost too much. In order to achieve this goal, I place value on the following:

  • Identifying investments with clearly understood drivers and complementary strengths and weaknesses
  • Dynamically adjusting risk appetite based on prevailing macro and market conditions
  • Combining assets so that I maximize the probability of fulfilling portfolio objectives

 

Performance Expectations

Over the long run, I believe dynamic beta management will drive results. Because I am striving for a long-term option-like return profile, I expect ROI will be maximized over time frames that include at least one bull and bear market. Over the short-run, I believe three decision-making variables will dominate performance results:

  • A focus on gradual position shifting allows me to focus on the big-picture while filtering out noise
  • Willingness to push my views when I have the requisite conviction: when the stars align, I press
  • Ensuring I allow room for being wrong for times when the unexpected occurs