Navigation n. The process or activity of accurately ascertaining one’s position and planning and following a route.
v. Travel on a desired course.
Focused on long-term downside risk management
Our approach is rooted in our proprietary quantitative model which incorporates maximum drawdown management when determining investments. Maximum drawdown is the maximum loss from a peak to a trough of a portfolio’s value, before a new peak is attained. While we pay close attention to daily and weekly fluctuations in the markets, we attempt to mitigate downside risk by focusing on events that persist beyond a few days or weeks in our modeling approach.
Preserving capital is key
Drawdown management is generally more effective in more severe and prolonged downturns. Historically, in periods during which our benchmarks were suffering protracted drawdowns of more than 5%, our strategies outperformed their benchmarks about 90% of the time.*
*Full details regarding this statement can be provided upon request.