Let’s achieve both. ​



Due Diligence

1.      When considering any investment, we first complete a comprehensive assessment focused on the likely performance of that security during extraordinarily difficult time periods. We can then determine potential risks from: 

  1. Macroeconomic forces
  2. Industry trends
  3.  Sector-specific factors.

During this preliminary analysis, we scrutinize the company for broad market and specific industry risks, as well as internal risks, such as financial risk, debt risk, and fraud risk. We examine everything from the company’s track record to the history of its top executives.


 We reduce potential overweighting through:

  1.       Sector Identification
  2.       Asset Class Selection and Allocation

Volatility Targeting

1.      Statistical modeling and probability theory allows us to determine the likelihood of variance from the mean for most stocks and funds during normal time periods. These same mathematical methods, formulas, and algorithms are widely employed by the financial industry to determine volatility. Such tools can be useful in prioritizing securities that match client risk preferences and time horizons.

a.      Our favorite description of Volatility Targeting can be found here: 

2.      The inherent weakness in all such statistical data is that it becomes all but useless when applied to unprecedented or extraordinary market conditions. Such data should therefore be seen as a secondary tool and not a final determinant. In our experience, seasoned common sense is far more valuable than a computer program when elevated risk occurs, and when preparing for it.

Optimal Hedging

1.      We have identified Managed Futures funds that have shown steady growth during normal market periods, as well as during times of extreme volatility. Institutional investors and hedge funds have used managed futures for many years to mitigate risk.




The Defensive Growth Tactical Allocation Strategy is designed to capitalize on economic and market fragility, which has been brought about by central bank interventions, corporate debt levels, demographic shifts, business cycles and other factors.


These factors may express themselves as credit/ stock market events, potentially significant in the near term. The portfolio is a defensive yet opportunistic strategy.


This investment strategy can be combined with others to fit your needs. Please feel free to contact us if you would like to discuss and explore investment ideas and options.