Our Approach

Our approach to risk management is so simple that it’s almost radical. We don’t study company balance sheets. We don’t interview executives. We don’t go with our gut.

Instead, we chart each investment. If the line on the chart goes up, that’s good. If it goes down, we watch closely. If it falls far enough to trigger our sell signal, we sell. Every time.

Take Research in Motion (RIMM). This stock gave its first sell signal in March 2011 at $64/share. At that time, many analysts urged their clients to add to their positions, or to at least “hold on for the long term.” Those investors watched their shares drop 85%.

Every stock, every fund, and every asset class is subject to the laws of supply and demand. We chart this supply and demand, and then we watch the chart.

This is not rocket surgery. It’s moneyball. In a game where most investors are whipsawed by fear and greed and indecision, we use cold numbers to put the best players on the field and use discipline to bench those who underperform.