The market is a dynamic entity that is subjected, and continually adapts, to various stimuli. At times, global macro policy changes or other such events can cause market expectations to shift dramatically thus creating a chasm between where the prices are and where they should be. When this occurs, the market attempts to regain a state of equilibrium by moving in a unidirectional manner that is defined as a trend.
Our program is based on the premise that people’s expectations adjust slowly and manifest themselves in long-term price trends. We believe that participating in such price movements will generate alpha. We do not predict trends but do try to take advantage of such an occurrence once we have confirmation of its existence.
Markets can experience fluctuations in price which may or may not signal fundamental shifts in direction, thus our focus on the strict adherence to prudent risk management techniques.