PHILOSOPHY

We believe in the fundamental process of asset allocation and diversification. However, we do not subscribe to the fact that diversification is synonymous with “set it and forget it.” For that reason, we have designed a dynamic asset allocation strategy that looks to not only deliver diversification, but also to generate alpha by seeking out the areas of the global markets that are currently offering attractive opportunities and avoiding those that are not. Through a mix of stocks, bonds, commodities, currencies, and options utilizing both dynamic and tactical strategies, we are providing what we believe to be diversification 2.0. This approach will hopefully allow us to deliver capital appreciation, yield potential, and risk diversification.

 

PERSPECTIVES

If investors had any doubts about how connected the world’s economies have become, the recent financial crisis and subsequent global stock market volatility eliminated any question about such claims. Long-held principles of asset class correlation and diversification by geography – the foundations of many asset allocation models – tend to break down when economies falter, as demonstrated during the financial crisis of 2008.

As the importance of sovereign boundaries diminishes, the investing focus shifts toward sector analysis and best-in-class opportunities that are not limited to the United States of America. Although our firm believes that the USA is the grandest nation on the planet, we are not naive enough to believe that all of the best investment opportunities are to be found within our borders.

In addition, there are opportunities in multiple asset classes to ensure diversification as investment opportunities expand and contract. We believe that a disciplined, diversified approach is the key to succeeding in the new modernization of the world and global economy.

In light of recent events, we brought together what we believe to be a world-class panel of investment managers and investment professionals to create a mutual fund that takes a different approach to the retail investor’s need for diversification. The Regal Total Return fund was created.