At Numetrix, we believe it is vital for advisors and clients to understand a firm’s belief system and philosophy. Below are some of the key beliefs that Numetrix has been built upon:
We believe that a multi-manager, multi-strategy, and multi-methodology approach is superior to traditional asset allocation or what has come to be known as “market portfolio theory.”
We believe we have solved the performance problem dogging a great many investment advisors. Instead of trying to guess which investment managers and strategies will work best for clients in a given market environment, we believe in systematically and dynamically allocating capital to the top rated strategies.
We believe that in order to be successful over the long-term, investors need to diversify not only across asset classes but also across holding time-frames, investment strategies, manager methodologies, and most importantly, investment managers.
We firmly believe that no single investment firm, let alone any single manager, can claim expertise in all areas of investing. For this reason, Numetrix brings together some of nation’s best and brightest independent investment managers – each with their own areas of specialty.
Next, we believe that “ownership bias” is a problem for many investment firms. Ownership’s view of how the markets work or how portfolios should be managed permeates a firm’s overall approach. Of course, this is fine when a specific strategy or style is performing well. However, while most investment managers are reticent to admit it, the dirty little secret in the business of investing is that ALL investment strategies/methodologies find themselves out of favor from time to time. Therefore, we believe that combining intellectual capital of multiple managers will help improve performance.
While a great many investment management firms provide a dizzying array of money management offerings, we believe a platform full of choices does not a portfolio strategy make.
We believe that the concepts of growth and capital preservation are NOT mutually exclusive. Investors can and should utilize strategies that focus on growth during positive market environments and capital preservation during bear market environments.
At Numetrix, we believe that the “buy and hope” approach has proven to be entirely too painful for the average investor.
We believe that if given a choice, very few advisors would intentionally keep their clients fully invested during bear market environments. As such, we believe that preserving capital during bear market cycles is “mission critical.”
Finally, at Numetrix Capital, we believe that investment strategies must be able to adapt to changing market environments. The same pedal-to-the-metal approach that can be successful in raging bull markets can prove quite painful when a bull market cycle eventually morphs into a bear market phase. At Numetrix, the overriding goal is to create portfolios that automatically adapt to changing market dynamics.