OUR INVESTMENT PHILOSOPHY

We are fortunate to be living in the best of times in the history of humanity. Much remains to be done. We focus on what we can control

Information is abundant. Analysis is Plentiful. We control interpretation, implementation and execution

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Post-crisis, at various points in time, sophisticated econometric models suggested that:

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• Inflation was imminent

• Equity multiple expansion would mean revert

• The US Dollar would weaken

• Rates would move higher

• Credit spreads would widen

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None of the above views have been consistently realized over the past decade. Asset price behavior suggests keeping an open mind, being aware of model limitations, and course correction in light of the new market realities

DEEP RESEARCH FOCUS: FUNDAMENTAL, MACRO, QUANTITATIVE, TOP-DOWN, BOTTOM-UP

Research. Research. Research

Financial markets are an aggregation of complex, dynamic systems comprised of individual asset prices where unpredictable behaviors such as small variances in initial conditions can have profound effects on the outcome of the system

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Based on the actions of various stakeholders including Central Banks, Governments and Individual firms, historical asset-price correlations are constantly evolving

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We systematically study these behaviors, implement a thorough and disciplined research process, equivalent to going through 6 rounds of analysis to find pick #199, aiming for long-term outperformance over intermittent periods of volatility

BALANCE CONVICTION WITH RESPECT FOR THE MARKETS

Inculcate a healthy ego. A strong ego can disrupt a profitable strategy

We are here to protect our portfolio. Importantly, our mandate is to produce healthy returns for our clients

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When the market moves against our views, we reassess the situation and risk manage the portfolio to the best of our abilities

PLAY YOUR STRENGTH

More games are won in practice than on gameday

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Have a well thought playbook and be prepared to modify and execute plays during the game

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Our expertise is in Macro investing

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We will play the game on the Macro playground

OPTIMAL DIVERSIFICATION

In dynamically evolving markets, historical asset-price correlations have experienced a continuum of change with the introduction of exogenous elements such as:

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• Quantitative easing

• Structural changes in commodity supply chains

• Introduction of new technologies

• Sovereign deficit financing

• Corporate debt financing

• Transition from a manufacturing to a services based economy

• ...among other effects

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We constantly re-evaluate correlations, update our views, and apply the optimal allocation to our portfolio to mitigate risk in carry efficient strategies