Asymmetry Asset Management 2.1

Investment Thesis

We call ourselves Asymmetry for three fundamental reasons:
(1) We seek asymmetric risk/reward investment profiles (meaning: we position ourselves for an infinite upside opportunity and a defined downside risk that can be hedged; providing a greater margin of safety),
(2) we suspect significant risk in fixed strategy funds over time and the associated cost of portfolio diversification in the rapidly changing and volatile global financial markets, and
(3) we target absolute market returns.


What do we aim to achieve?

In an environment where equity market returns are negative or below money market rates we target 10% plus p.a. returns; and

When equity market returns perform better than money market rates we aim to outperform the equity market. While we believe this is possible, it may not be a likely outcome given the need to hedge our positions. We do this to protect the growth and lock in profits. Specifically, it is where the risk of a surprise in the market breaches a level with which we are not comfortable.

Therefore, this may translate into returns below the market index performance, for example, during periods toward the end of a strong bull market rally.