I want to help institutional and individual investors answer the question: How can one achieve persistent absolute returns? The most important thing is educating investors and clients about important developments in investment strategies, portfolio construction techniques and active asset management. I think that everything is active since even the choice of the equities and bonds proportion in a portfolio, rebalancing frequency, or the conscious decision for ETF's are active decisions.
I think that disciplined money and risk management techniques in combination with factor timing provide promising investment solutions. While my systematic Global Macro strategy is far from unique, the strategy's particular implementation probably is. I believe however that my own particular implementation of short-term systematic Global Macro over a wide range of asset classes is both robust and effective, and provides excellent potential for capital growth. My experience and my investment strategy provide balance and stability in a world where all too often greed, excess leverage, lack of liquidity and lack of extended research lead to the collapse of investment strategies. Here, a handful of trades is carefully chosen and implemented in a risk controlled manner, and this makes my strategy more selective and uncorrelated compared even to other Global Macro approaches, where usually many positions are held at the same time.
To generate sustainable, transparent, implementable and cost-effective investment results, investors will need to use investment processes similar to this as it is a more efficient way to react and adapt to continuously changing market conditions. However, in the long run, the primary benefit of short-term factor timing investing lies in higher risk-adjusted returns compared to market returns. It is an investment style that involves harvesting market inefficiencies, but it involves risk as well so sometimes there are short-term losses. The crucial challenge facing absolute return investing lies in the mindset of the investor, as sometimes results will be negative and sometimes impatient investors will get out right at the wrong time. Hedge fund investing takes commitment, knowledge and patience.
My job has been to deliver outstanding investment returns by applying groundbreaking scientific research. One of the key aspects is the dynamic construction of portfolios and this is where portfolio manager skills count most. When considering any active strategy, investors should have a clear understanding of the sources of expected returns, the stability and sustainability of those returns, the risk exposures and risk controls, the liquidity demands of the strategy and whether the management costs are commensurate with expected results.