In 1998, we applied our unique process, The Opportunity Map, to the research we had been conducting on investment strategies that had succeeded in the 1973 - 1980 time frame.
Why this time frame? Two reasons. First, it was the most recent and difficult bear market. Second, the time frame leading up to the '73 - '74 bear market bore resemblance to what we were seeing in the markets in 1998/1999: high market multiples, mispricing of stock assets, "no earnings" business models receiving market valuations, momentum investing in favor in those companies, and a high concentration of financial assets in a relatively small number of stocks, and a financial press touting a "buy 'em and forget 'em" path to wealth in those same stocks. (much like the nifty fifty of the late 1960's)
Our solution to the risks we perceived was to launch a long/short hedge fund strategy with which we were successful in generating positive client returns, no drawdowns and a smooth equity curve from 1999 through 2005.
This began our move into the Alternative Investment space.
By 2005, the market became over-crowded with long/short funds as those of us early to the market proved its viability in difficult equity markets. This market over-crowding removed the inefficiencies in pricing and perception that we relied on for trading, and therefore our ability to generate trading profits.
While the trade was "gone," our perception of continuing market risk was not.
In response, we launched a series of opportunities for investors, all based on a similar application of The Opportunity Map to alternative asset classes.
To date, our clients have enjoyed what was our originally stated goal: an equity return with a fixed income ride.
Contact us to find out more about what we do, how we do it, and for whom we do it.