Enhancing your purchasing power
Our mission is to protect and grow your purchasing power, by focusing on downside risk and returns in real terms. Contrary to so-called "passive" investing, we invest in markets, sectors and equities when duly compensated for the risk we are bearing and not simply because they are part of an index.
Because the future is unknowable, we prepare and adapt
Investing is about anticipating the future. Naturally, we can’t foresee the future but that doesn’t mean we don’t know anything about it. We can still anticipate and think strategically about possible futures outcomes and prepare for them. Tomorrow’s prices cannot be predicted, but we can estimate assets’ intrinsic values and invest when adequately compensated for the risk we are bearing. Also, whereas we cannot predict future trends, we strive to recognize them when they are still in their infancy and use the signal they emit to adapt our portfolios to changing investment conditions.
Seeking higher long-term return from lower downside risk
We embrace future uncertainty with portfolios that are expected to offer convex payoff profiles, where the gains from positive outcomes are larger than the losses from negative ones. Our global equity strategies strive to lose less than the market during periods of negative market return whilst capturing a relatively higher portion of the upside. Whereas such strategies tend to lag the broader market during strong bull runs, they are expected to generate excess returns over the long haul.
Investing is about managing risk, not return
In the kernel of our thinking lies the view that simple investment processes are more robust to uncertainty than complicated ones, that negative information is more robust than positive information, and that the essence of investing is the management of risk and not return. We combine humans’ wisdom, to understand context, see patterns, have intuition and be flexible with the discipline and computing power of the machine, in a way few investors do.
Sector Omega manages the Sector Global Equity Kernel Fund.
Co-founder of Sector Asset Management with more than three decades of experience from analysis of the global economy, commodities and capital markets.
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