Strategies
Allocation is the decision that matters.
Our approach to the asset allocation decision begins with a thorough analysis of the global economy, with a specific focus on market indicators and international capital flows. We consider every asset class: not just stocks and bonds, but commodities, gold, currencies and real estate.
Where returns come from
Stock picking is roughly 5% of the story.
Our experience has taught us that all asset classes become significantly mispriced at some point. An objective mindset, guided by a focus on liquidity, earnings, technical and sentiment indicators, helps us identify those periods and capitalize on them for our portfolios. The bulk of long-term return is decided long before any single security is chosen.
95%
Asset allocation
5%
Stock selection
An illustrative emphasis, not a measured statistic: studies of diversified portfolios attribute most of the variability in long-term returns to asset allocation rather than security selection.
Asset classes
Strategies built to navigate changing markets.
Access to these strategies has only recently become available to non-institutional investors. Adding them to a portfolio increases the probability of exceeding your investment goals.
Fixed income
Defensive positions built to protect wealth.
Our bond strategies span the globe and every corporate sector, with a focus on short durations and high credit quality — primarily government, sovereign, and investment-grade corporate issuers. Key inputs include the economic cycle, inflation expectations and credit conditions.
Commodities
Stock-like returns with a low correlation.
Commodities can offer long-term returns comparable to equities, while exhibiting low correlation with stocks, bonds, currencies, and real estate. This makes them a powerful diversifier within a well-constructed portfolio.
Gold
Stability and protection, without giving up return.
Gold is included to reduce portfolio volatility without sacrificing expected returns. Through normal economic cycles, it performs in line with a diversified commodity basket, providing stability and meaningful protection when it matters most.
Currencies
Complementing cash and bond strategies.
Currency allocation complements our cash and bond positions, with exposure across the U.S. Dollar, Canadian Dollar, Euro, British Pound, Japanese Yen, and other currencies. Positioning is driven by inflation expectations, interest rate differentials, and fiscal/debt outlooks.
Analyze the global economy
We start with the macro picture — market-specific indicators and international capital flows that drive movement across asset classes.
Identify mispricing
Liquidity, earnings, technical and sentiment indicators reveal when asset classes have drifted away from fair value.
Position the portfolio
We allocate across regions and asset classes to capitalize on those periods while managing risk objectively.
Build a portfolio for
a changing world.
Talk to us about an allocation designed around the global macro environment and your goals.