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PERFORMEX® MULTI-MANAGER COMBINATIONS
Overview
The Performex® Approach actively manages investor accounts utilizing combinations of separately managed accounts, hedge funds, mutual funds, Unit Investment Trusts (UIT) and commodity trading advisors. A Performex® portfolio seeks to achieve profitability in falling Market months, solid performance in rising Market months, (although giving up a little for the cost of defense), as we always have our offense and defense on the field at all times. The result is excess returns over a full Market cycle due to compounding. This is achieved by selecting managers and styles that exhibit low or negatively correlated movements between each other and the Market.
Advantages of Performex® Multi-Manager Combinations
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Performex® Multi-Manager Combinations are designed to reduce the volatility, if any, exhibited by the Designated Manager/Funds on their own. |
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The uncorrelated strategies of the Performex® portfolio Managers are intended to produce absolute returns during stable or turbulent Market conditions. |
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Performex® portfolios can be expected to enhance compounded returns over time by compressing volatility. |
The Performex® Approach
Performex® creates customized portfolios of Investment Managers selected from a universe of over 46,000 Managers with the goal of being uniquely well-positioned during both rising and falling Markets so as to provide absolute returns.
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Performex® couples state of the art investment technology and experience to seek better investment performance and an optimal level of risk/return exposure. |
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Performex® distinguishes itself from traditional asset allocation solutions by incorporating and blending numerous performance attributes to enhance the probabilities of success. |
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The Performex® Approach is designed to meet growth objectives with minimal valuation downdrafts. |
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Performex® decisions are enhanced by monthly data on all money managers in each performance attribute, permitting the ongoing selection process to be monitored and refreshed in a continuous search for optimal Combinations. |
Access Fund Management Fees: A 12% Performance Fee and a Program Fee of 1.75%
How to Win in Bull and Bear Markets WINNING INVESTMENT PRINCIPLES
The following points set forth the principles resulting in the development of the Performex® Analytical and Multi-Manager selection methodology system:
Market Risk Management
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Conventional asset allocation ignores Market risk |
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Yet, Market risk generates 70% of the equity risk |
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Successfully managing Market risk does not require Market timing |
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What is required is a better understanding of diversification |
Superior Strategies
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Anticipating capitalization shifts between large and small cap securities |
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Successfully exploiting Value/Growth movements |
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Allocating assets between Managers with low or negative correlations to the Market |
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Allocating Assets among qualified managers with low or negative
correlations to each other |
Inferior Strategies
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Bond/Equity (“Balanced”) managers |
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Selecting Managers based on performance versus attributes of performance |
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Expecting the same Manager to be superior at both stock and Market selection (Global Markets) |
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Expecting the same firm to be superior at stock picking, Market weighting and currency shifting (International Markets) |
MULTI-MANAGER PRODUCTIVITY
Our selection process focuses on Performance Attributes:
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We start with a universe of over 46,000 Managers/Funds; |
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We then screen from the top down, in terms of (amongst other elements): |
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Growth |
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Standard Deviation |
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Risk Adjusted Returns |
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Minimum 12-month Rolling Returns |
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Draw downs |
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Performance during Falling Market Months |
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Consistency of superior performance in these attributes |
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We then screen surviving Manager/Fund candidates again using these same attributes; |
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Finally, we seek optimal combinations of Managers/Funds to leverage strengths in the various attributes while minimizing their individual and collective risk factors. |
The Expected Result
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Excess returns over the S&P 500 Total Return Index over Full Market Cycles |
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Positive returns in Falling Market phases |
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Successful management of Market risk |
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Dramatically improved investment compounding |
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Effective diversification |
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Avoidance of inferior strategies |
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Increased investor confidence in the efficacy of future results based on past performance attributes which tend to repeat themselves in similar future Market conditions |
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