Modern Portfolio Theory

In 1952 Professor Harry Markowitz received the Nobel prize for the Modern Portfolio Theory (MPT). Professor Markowitz studied the effects of risk, return, correlation and diversification. The key to making money, according to MPT, is diversification in low correlation asset classes resulting in increased returns, reduced drawdowns and reduced portfolio volatility.

Diversification and Non Correlation Is Key To Success

We have very low correlation to other asset classes: indexes, stocks, bonds and options - thereby affording our clients greater overall diversification and reduced portfolio risk. Check our results. During the recent meltdown in the world stock markets we did great. When the stock market recovered we still did great.

Low correlation, diversified portfolio has higher returns with lower drawdowns.