An insightful article. You write: This alternative path can and should protect your capital from large losses and adverse market conditions, yet – unlike cash – offers strong prospects of an attractive return stream as well as long as it is skilfully implemented. This can be done skilfully and carefully and in a diversified and hence safer way by experienced investment professionals running a dynamically managed multi-asset fund of fund type approach. Other than your own firm, which I presume offers ordinary people like myself the opportunity to do this, what other funds do so. Can you provide ANY examples.? The utility of the article would increase significantly if people had some idea of what funds actually do what you are suggesting.
Hi Peter Brown, you clearly understood something of this article ... I'm lost. What is 'This alternative path'? Thanks.
We are to assume, I suppose, that Dr Lander and Procapital will offer this "skilful", "dynamically managed" solution to the challenges we face as investors in the current climate. Unfortunately, there is little evidence to support such an assumption, at least in this article...
".... by experienced investment professionals running a dynamically managed multi-asset fund of fund type approach" sounds all too familiar. Those around in the early to mid 2000s may recall the launching of a number of this type of fund. A quick flick through the bottom drawer of the filing cabinet found Colonial Global Diversified Strategies, HFA Diversified Investments, GS/JBW Retail Multi Strategy and Deutsche Strategic Value. Despite all four being touted to make money in both rising and falling markets, none did. The average draw-down of this group during the GFC was roughly 35%. Only the HFA product, with a different promoter, survives. Will this approach work in the next bear market? History says no, but there are enough weird things happening these days that, maybe this time, things really will be different.
Another condescending and useless article from Dr Jerome. He explains that everyone in the world is stupid (except himself) and seems to believe that he's the only person to have heard of absolute return strategies. Once again he offers no practical advice or investment ideas despite giving his article the title of "How to invest productively...".
Feels like one big sales pitch to me.
I haven't learned anything from reading this article...Is this "skillful" approach investing in 'Put' options and Bear ETF's? What are these "exceptional risk adjusted returns absolute returns" net, after fees? The whole article just reads as sales spin to me. Am I missing something?
There's a few important points to note about the author's response to Peter's request for alternate investment examples "Other than your own firm". Jerome names the Lucerne Alternative Investments Fund and Dynamic Asset's Wealth Protector portfolio before declaring that it's difficult to find anything else. Note that Lucerne is a "Fund of Funds" so investors are paying a manager to select a group of funds, so there will be two levels of management fees deducted. Also, Jerome has forgotten to disclose that he is the manager of this fund. The second example given - well, unfortunately Jerome has failed to mention that he is also the manager of this product.