Investment Strategy

DAA
Our strategy can be best described as a Dynamic Asset Allocation (DAA) strategy. It invests in broad asset classes such as stock indices, bond indices and commodities.

Unlike a traditional buy & hold portfolio, a DAA strategy is able to enhance returns and minimize losses by increasing allocation to assets expected to outperform, and reducing allocation to assets expected to underperform.

Our model is both quantitative and systematic, meaning well-defined mathematical rules govern exactly when and what we trade.

We invest long only but are unconstrained in the sense that we won’t take any benchmark in consideration and have the flexibility to allocate up to 100% to equities to capture trends and up to 100% in cash to protect our capital.

Our strategy can be best described as a Dynamic Asset Allocation (DAA) strategy. It invests in broad asset classes such as stock indices, bond indices and commodities. Unlike a traditional buy & hold portfolio, a DAA strategy is able to enhance returns and minimize losses by ...

Our strategy can be best described as a Dynamic Asset Allocation (DAA) strategy. It invests in broad asset classes such as stock indices, bond indices and commodities.

Unlike a traditional buy & hold portfolio, a DAA strategy is able to enhance returns and minimize losses by increasing allocation to assets expected to outperform, and reducing allocation to assets expected to underperform.

Our model is both quantitative and systematic, meaning well-defined mathematical rules govern exactly when and what we trade.

We invest long only but are unconstrained in the sense that we won’t take any benchmark in consideration and have the flexibility to allocate up to 100% to equities to capture trends and up to 100% in cash to protect our capital.
Momentum
Momentum investing aims to capitalize on the continuance of existing trends in the markets.

The underlying intuition of a momentum investment strategy is that assets that have performed well recently tend to continue to perform well, and conversely, those that have underperformed tend to continue to underperform.

Academic Research has proven time and time again that Momentum is a sustainable risk premium. The momentum effect has proven to be present across many asset classes, including equities, bonds and commodities.

The Affectum Global Dynamic Allocation Fund uses an ensemble of momentum indicators to identify eligible assets for inclusion in the portfolio.

Momentum investing aims to capitalize on the continuance of existing trends in the markets.The underlying intuition of a momentum investment strategy is that assets that have performed well recently tend to continue to perform well, and conversely, those that have underperformed ...

Momentum investing aims to capitalize on the continuance of existing trends in the markets.

The underlying intuition of a momentum investment strategy is that assets that have performed well recently tend to continue to perform well, and conversely, those that have underperformed tend to continue to underperform.

Academic Research has proven time and time again that Momentum is a sustainable risk premium. The momentum effect has proven to be present across many asset classes, including equities, bonds and commodities.

The Affectum Global Dynamic Allocation Fund uses an ensemble of momentum indicators to identify eligible assets for inclusion in the portfolio.
Global Multi-Asset
Momentum occurs in any market and in any asset class at different periods of time.

Our investment strategy allows for the flexibility to allocate to those assets displaying the most interesting trends regardless whether this is Japan or Europe, Equities or Bonds.

Our investment universe is comprised of ETF's tracking a range of broad international asset classes such as stock indices (SPY, EEM), bond indices (IEF) and commodities (GLD, DBC).

Momentum occurs in any market and in any asset class at different periods of time. Our investment strategy allows for the flexibility to allocate to those assets displaying the most interesting trends regardless whether this is Japan or Europe, Equities or Bonds.Our investment un...

Momentum occurs in any market and in any asset class at different periods of time.

Our investment strategy allows for the flexibility to allocate to those assets displaying the most interesting trends regardless whether this is Japan or Europe, Equities or Bonds.

Our investment universe is comprised of ETF's tracking a range of broad international asset classes such as stock indices (SPY, EEM), bond indices (IEF) and commodities (GLD, DBC).


Investment Philosophy

At Affectum Capital it is our belief that investors have only very limited ability of predicting what tomorrow will bring. We therefore prefer to base our investment decisions on our extensively tested and proven models, thus avoiding the investment actions to be dictated by our emotions.

We believe that investing with the flexibility to allocate between various broad asset classes such as stock indices, bond indices and commodities worldwide is the best approach to protect capital in downturns (by allocating to safer investments) and participate in upward trending markets (by investing in more risky investments) to generate capital appreciation in the long run.

We believe that protecting capital from extended downward trending markets (as opposed to a buy and hold approach where you sit through the pain) is a critical step towards adding value in the long term. By dynamically divesting from such assets we attempt to avoid losses which will not have to be regained.

Risk Management is at the heart of our process. We prefer to win by not losing.