Chief Investment Officer & Lead Portfolio Manager
K. Sean Clark, CFA
Director of Research
David J. Rights
Mason D. Wev, CFA
Our investment philosophy is based on two fundamental beliefs.
The investment process begins with a disciplined, quantitative analysis of relative strength across three subsets of the global equity markets:
Portfolio Managers systematically measure each security versus every security within a targeted universe. The top two quartiles are then identified as an investable idea and then optimized to separate real trends or themes from "market noise." Lastly, each buy candidate is analyzed for external events, liquidity constraints and overall diversification needs.
A strategic hedge using an allocation to exchange traded products based upon the CBOE Volatility Index (VIX) to manage volatility. The Fund's management philosophy is driven by a single-minded focus: superior risk-adjusted long-term performance. Controlling portfolio volatility is the key to achieving this goal.
*Correlation is a measure of how asset classes move in relation to each other. In perfect positive correlation of two assets classes, a 1% rise in one is mirrored by a 1% rise in the other; the same is true of declines. When asset classes are negatively correlated, they move opposite to one another. Within a portfolio, negatively correlated asset classes have a great potential for reducing risk.