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From Precy Dumlao, Opalesque Asia:
Diversifying over multiple and independent strategies is very important to achieve good results in today's volatile market environment, said InCube Capital, a Swiss investment management firm, based in Zurich, Switzerland.
"Our three pillars Relative Value, Money-Flow and Trend-Following have different return sources, they do not correlate to each other. Each single strategy is based on a sound economic rationale and is attractive on its own, however if you combine them, the result is superior," said Lorenz Arnet, one of the founding partners of InCube Capital, told Opalesque.
Arnet explained that with a single strategy, for example trend following, investors do not get the degree of diversification anymore today, even if the portfolio consists of 50 different markets. "Today's market structure is different than it was 10 years ago. Cross asset correlations are very high and still rising due to macro-economic uncertainties and new market players such as ETFs and High Frequency Traders. What you need in such a market is diversification over multiple, independent strategies and not only diversification over different markets," he added.
Using the principle of diversification, InCube’s Promoveo Fund finished August up +4.54% and its year-to-date performance by end of last month +14.33%. In addition, due to the multi-strategy approach, the InCube Promoveo Fund has a ...................... To view our full article Click here
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