RISK ≠ REWARD
Breaking the correlation between risk and reward
When it comes to portfolio construction, management of risk is everything. So why keep the risk in the same market as the reward?
We use a strategy based on cross-market risk/reward to minimize risk while keeping return probabilities high, resulting in increased alpha with minimal standard deviations.
In plain English, we place your risk in a safe market while placing your reward in a volatile (read: more like to produce higher returns) market.
The mechanics of the strategy involve placing risk in the safest market, bonds. Investors can choose minimum acceptable credit grade for maximum risk tolerance control.
Since we place the reward component indirectly into the equity market, the rewards tend to greatly outweigh that of the bond market, with a fraction of the risks of traditional equity exposure.
Investors are able to choose a sector, index, or individual product in which to place the reward component. Short exposure (betting on a bear market) is also possible, even within retirement accounts.
Due to the nature of the credit and derivatives market, the strategy can handle investments in the tens of billions (dependent on capture vehicle), with a deep pool of liquidity.
No two investors are the same, and we don't believe that putting everyone into the same basket is wise or fair. Each plan is customized to the individual/entity based on preferences.
Meet the Portfolio Manager
Matt Williamson is a well-respected advisor, trader, and instructor in the financial space with a specialty in risk management and derivatives. He has worked with hedge funds, institutional clients as well as high net worth individuals in consulting and risk/portfolio management. Additionally, he was hand-selected by the former head of education for TD Ameritrade to teach the retail trading community at live events and a daily online broadcast.