The multifaceted investment strategy offers the following key features:
Exchange Traded Funds (“ETFs”) serve as the cornerstone of the portfolio making the strategy less constrained than most funds. ETFs give the strategy access to a highly diversified set of asset classes from which it can generate return potential while providing intraday liquidity.
- Risk Management:
Volatility in the capital markets cannot be eliminated, but it can be managed. The strategy seeks to manage the portfolio’s level of volatility more actively than is common in a traditional portfolios (60% equity / 40% fixed income) by being adaptive to extreme market conditions. Strategy can potentially move to less risky assets during periods of significant financial disruption with the ultimate goal of improving overall portfolio performance. Risk is also further mitigated by holding ETFs which diversify business and unsystematic risk.
Numerous risks are mitigated through diversification. The portfolio can contain, at any given time, equities, fixed income securities, real estate and hard assets across domestic and international developed markets as well as emerging and frontier economies. The varying asset classes seek to dampen the effect of inflation, duration and interest rate changes and geographical diversification can reduce market and political risks.
- Low Correlation:
The purpose of the Global Asset Allocation is to allocate resources more toward better short-term opportunities including reallocating to cash. The portfolio utilizes both quantitative and qualitative properties that signal changes in economic environments affecting geographies and industries globally.
Disclosure: The strategy described may not be suitable for all investors and there is no guarantee that investment objectives can be achieved. Investing entails risks and there can be no assurance that Recon Capital Partners will achieve profits or avoid incurring losses.