We started tracking investment performance in real-time investment fund last year. Last year we launched conservative strategy and it yielded 12.2% returns versus SP500 returns of 12%.
Our goal has been to develop market neutral strategies that would enable investors to invest in any market environment with the goal of beating the market over the long-term, while ensuring consistent investment and reduced panic reactions.
We reached this goal by developing a proprietary index that has long-term Beta of -0.08 and has a R2 (correlation factor) of 0.1. In other words, both of these measures suggest that the benchmark is uncorrelated with the market (SP500).
We leveraged this proprietary benchmark and clubbed that with additional analytical techniques to develop following two investment strategies:
- Enhanced Conservative
January 2017 Performance
Following chart shows performance of the SP500 with dividends in January alongside performance of the proprietary Benchmark, and the two investment strategies, available to investors.
Context: January was a time when market uncertainty was very high. Investors were concerned how the market will react after the new president takes the office, especially after such a nice run in the equity markets in November/December 2016. Lastly, there were some executive orders that took the world by surprise and caused a lot of confusion even for the investing world.
February 2017 Performance
Following chart shows performance of the SP500 with dividends in February alongside performance of the proprietary Benchmark, and the two investment strategies, available to investors.
Context: In February, Trump rally resumed while the investors started pulling from stocks in easy February after EO related confusion. It was a time when our proprietary strategies did not perform as well. And the reason is that we stay market neutral with focus on consistent returns through undervalued assets. Since February turned out to be a month where expensive assets became even more expensive, our investment strategies didn't result in amazing returns.
Our goal is to produce consistent, uncorrelated returns using unique analysis techniques, that will enable your portfolio to beat the market over any economic cycle and provide you the peace of mind to stay with the strategy. We don't believe in beating SP500 every single month. And therefore, if someone wants to try this strategies just for the short-term, we will suggest that they will be disappointed at some point in the near future.
Will start running these strategies in Q2'2017. If you are interested in investing, you can register below and we will send an update when the strategy is available for investments. Some of the key outputs from the data models used in this strategy are also available through subscription