Most of the educational material on this website was designed for individuals interested in using geometry to speculate in the capital markets. However, all of us eventually age and some cannot afford the risk of losing capital that they will need to retire with. For this reason, we are happy to announce that Ross Beck, FCSI will soon be accepting funds for managed accounts with a focus on capital preservation. This page is for informational purposes and is not to be construed as a solicitation of funds for investment purposes.
Active Investment Strategy
The strategy is systematic and involves the use of three exchange traded instruments that follow the following indices:
- Bloomberg Barclays U.S. Aggregate Bond Index
- Dow Jones U.S. Completion TSM Index
- MSCI EAFE (Europe, Australasia, Far East) Index
The strategy will periodically adjust open positions about every two weeks. Allocations will be based on a proprietary algorithm and will vary based on predetermined market conditions. The percent allocations in the portfolio have minimums and maximums as outlined below:
- Cash: Minimum 0%, Maximum 40%
- Bond Index: Minimum 40%, Maximum 60%
- U.S. Small Cap Index: Minimum 10%, Maximum 20%
- International Equity Index: Minimum 10%, Maximum 20%
The cash reserve maintained in the account will often be invested in T-bills or short term money market instruments.
The strategy has a high Sharpe ratio (the difference between the returns of the investment and the risk-free return, divided by the standard deviation) and therefore is suitable for investors with a low risk tolerance. Minimum account size will be 100K USD or equivalent foreign currency. If there is a desire to stop trading or to close the account, this is possible at the end of the current billing cycle. A fee will be deducted from the funds in the client trading account or by billing the client directly. The fee is 10% of the any profit generated in the account during the billing quarter. If no profit is generated during the billing quarter, then no fee will be charged to the client.
The strategy has been tracked real time by timertrac.com for over two years using TSP funds. TSP funds are only available to U.S. Government employees, therefore the results seen at timertrac.com will vary from the strategy discussed above. As noted, the portfolio in often heavily weighted with Bonds and for this reason, when comparing this portfolio to other investment products, it should be compared a bond fund rather than an equity fund.