Category: Alternative Investment Strategy

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sustainable investing
Alternative Investment Strategy

How to Build a Sustainable Investment Portfolio

In recent years, sustainability has moved from the financial sector’s periphery to the mainstream, and the industry has increasingly embraced a transition to a more sustainable and inclusive economic model. This in turn has made ESG investing is a hot topic right now.  Environmental, social, and governance programs look at not only financial factors for […]

Alternative Investment Strategy

Seasonal Stock Depression

If it seems like September is looking like a rough period for the market you might be surprised but you shouldn’t be.  In fact, over the past 50 years, it is the worst performing month of the calendar year.  The chart below shows where the saying, “Sell in May and Go Away”, comes from referring […]

Alternative Investment Strategy

Who is Driving the Bus?

Nobody likes paying for insurance.  It is intangible as you pay up front for an unknown risk that may or may not materialize.  Many of us feel that we overpay, until we really need it.  It is perhaps not surprising then that many investors spend little effort protecting against sudden and unexpected drops in the […]

Alternative Investment Strategy

Call me a Pessimist

All investors know the adage to “buy high and sell low” but few adhere to it.  We can see this with record volume to start July trading coming mostly from retail investors as the S&P reaches another all time high.  Perhaps I have been in the futures industry too long because when things are “too […]

Alternative Investment Strategy

Hedging an equity portfolio: Volatility

We opined in our last article that “Traditional Hedges Suck” that most traditional hedges had significant weaknesses and did not have many characteristics of a great hedge.  Volatility (long positions in VIX futures), while not perfect, has a number of these favorable characteristics for hedging an equity portfolio. The characteristics of a great equity hedge […]

Alternative Investment Strategy

A Better SPY?

Index investing is all the rage now with over a trillion dollars invested in the SPY and VOO ETFs alone.  The expectation is that low fees coupled with broad market exposure is better for your portfolio than an actively managed strategy with higher fees. One could argue that as the components of the indices attract […]

Alternative Investment Strategy

Why Traditional Hedges Suck!

An article by Scot Billington, Covenant Capital Management Unfortunately, most traditional hedges suck. Buy and hold investing has been wildly successful since 1982; however, its adherents have had to endure two 50% drawdowns; a 25% down day; and a 14-year period of zero return.  Long term wealth is significantly impacted by drawdowns of more than […]

Alternative Investment Strategy

Futures Contracts are Easy. You are Already Using Them.

I have spent over a decade in the futures industry so I am accustomed to the blank stare when I tell people what I do. Most immediately assume it is too complicated to even try to understand.  The ironic thing is that we all intuitively understand them already. We trade them all the time. We […]

Alternative Investment Strategy

Market Sentiment. I feel that you should pay attention.

Market sentiment is a broad term that encompasses the prevailing feeling that investors have about a market.  Measuring this “feeling” can be accomplished in a variety of ways. CNNMoney has a Fear and Greed Index that displays this in a simple format showing when investors are most willing to take on risk or hunker down. […]

Alternative Investment Strategy

Investment Portfolio Design for an Unpredictable World

Investors are always faced with choices.  My experience tells me that these choices are often driven by simple quirks of human behavior.  Two of these that seem to be big drivers seem to be recency bias and a desire for simplification.  Both of these naturally make us poor investors. For example, in March of 2020 […]

Alternative Investment Strategy

We Are All Survivors

Duncan Coker — Rivercast Capital Management — January 2020 Congratulations if you are reading this article you are a survivor! Granted on some days nothing seems to go right but compared to the alternative life is good. It tends to give us an optimistic outlook as it should. Optimism is a great thing and without […]

Alternative Investment Strategy

Crisis Alpha and Risk in Alternative Investment Strategies

The investment community has heard and is following the siren call of Alternative Investments. Their seductive return properties and the mystique surrounding how they make money has tantalized investo

Momentum
Alternative Investment Strategy

Why does momentum investing work?

Conventional wisdom says that once any stock-picking strategy nears “sure thing” status it should be doomed. If everyone knows the secret to vast riches, how could the strategy possibly work anymore? But there is a successful strategy that has been followed — and widely discussed — for decades, yet somehow persists as a relatively reliable […]

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