Philosophy & Approach

The underlying philosophy of our program is that economic systems adjust to changes in fundamentals gradually and over long periods of time, and that the consequent trends are evident throughout history. Political, economic and social regime changes trigger price adjustments in markets that do not happen instantaneously.

Unfortunately markets don’t move from one state to another in a straight line: there are periods of countertrend shock and volatility.  A successful investment program has to deal with those unsettling but inevitable events, whilst maintaining the ability to generate positive returns.

This leads us to the key tenets of our investment philosophy:

• A long-term trend-following approach
• Effective diversification
• A fully systematic methodology
• Disciplined risk management

Our computer driven program, which was developed by Paul Mulvaney and launched in 1999 after being back-tested with 16 years of data, is a breakout trend-following system which uses proprietary algorithms to determine position sizes, market correlation, and entry and exit strategies.