Cardea employs a two-step investment process. First, we evaluate our global multi-asset portfolio using our Trend Filter. Second, we implement a momentum check to adjust the allocation towards particularly strong asset classes. The two-step process is described in more detail below.
Cardea’s Trend Filter approach invests capital in global markets with rising trends and exits markets that are beginning down trends. The benefit of this approach to investing is that we will exit markets that are entering a down trend at an early stage, while riding up-trending markets for many months sometimes even years. The fact that we exit markets that are starting to perform negatively at an early stage dramatically reduces the risk for larger losses in the portfolio and creates a very stable performance over time. When applied in a typical multi-asset portfolio environment with assets from all over the world the effect is even greater.
In the investment world, trending markets have proven successful over long periods of time. Markets tend to follow Newton’s first law, “An object that is set in motion tends to stay in motion.” Simplified, a market that has started to move up, tends to continue to move up for an extended period of time.
Cardea’s Momentum Filter evaluates the relative strength of each component of our portfolio on an ongoing basis. We actively increase or decrease allocations based on the relative performance of asset classes, focusing on maximizing allocations to the strongest performers. In addition, the technique rewards asset classes whose returns are created with lower volatility. Over time, this strategy is proven to create substantial outperformance.
We are happy to explain our internal strategies in detail to our clients. Contact us to have an in-depth discussion about our investment process via phone +352 202 033 27 or email email@example.com.