Nivin Global Fund
Through statistical analysis and mathematical modeling of historical data, they strive to identify profitable trading opportunities. The instruments traded range from highly liquid index futures contracts traded around the world as well as metals, energies, softs, livestock and grains
They believe this approach to investment management, can provide genuine diversification benefits which should be the target of any high quality portfolio. Their clients seek an aggressive long-term investment in an alternative asset class which is non correlated to equities and bonds.
Their long/short quantitative system allows us to profit from moves either up or down in our chosen markets and provides an investor with potentially very high yields in an otherwise low yield environment.
Nivin offers its services to Wholesale clients, family offices and institutions through a Managed Discretionary Account (MDA) and is a Corporate Authorised Representative of GFIN.
Three Seasons Share Fund
GFIN Investment Management wants to change the way investors think about markets. Our aim is to manage risk rather than primarily chase returns, and help investors navigate through the short-term so that they can focus on the long-term.
The investment process for GFIN Three Seasons program is systematic and trading decisions are based entirely on proprietary quantitative models. The asset allocation motives behind this program are the result of client feedback. The current economic climate and demographic demands give a priority to dividend yield and capital preservation. The Three Seasons accounts hold a core of high yield stocks and apply a futures-based overlay to boost returns plus contain downside risk whilst aiming to enhance a portfolio’s risk-adjusted return.
GFIN’s managers are positive about the inter-play between market risk and return which we observe is often based on investor perceptions rather than particular measurements of market risks. To this end, The Three Seasons median market exposure is circa 80% long with risk adjustment ranging from 50% short through 130% long market exposure. Based on our observations of financial market dynamics, The Three Seasons attempts to reconcile Efficient Markets Theory with behavioral finance frailties of sticking to one’s investment plan.
It is close to impossible for individuals to be the idealised “buy and hold” long-term investors they know they should be given standard investment options. Investors understand that attractive long-term returns require long-term investment. However when superannuation portfolios experience a significant decline in value, their financial survival instincts make it extraordinarily difficult for them to keep their remaining wealth in the same portfolio strategy. It is also reported newer investors can have lower tolerance for risk and are more likely they are to abandon their investment strategy.
By actively overlaying portfolios GFINs aim is to make it easier for individuals to stay invested and to achieve the potential returns associated with long-term investing. Rather than passively accepting whatever level of risk the markets may offer, we actively adjust market weighting to provide investors with a more consistent amount of risk within the The Three Seasons strategy. The primary goal is to contain changes in market risk and ultimately enable investors to stay focused on the long term.
Market dynamics and efficiency will vary over time and investment strategies must allow for this.
Any single model’s effectiveness will vary over a given time period.
Risk management can be an important source of alpha.
It is not the number of securities in a portfolio that determines diversification; it is the number of risk factors.
Three Seasons – Australian Share Fund. 6% performance hurdle.
Three Seasons – International Share Fund. 6% performance hurdle.
GFIN Barwon Investment Program
A Better Way…
According to Warren Buffett, the top 2 investing rules are…
Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1.
I believe that the most important aspect of financial planning is having an investment approach that protects you from large permanent losses and still gives you an opportunity to make money over the long-term.
Our goal at GFIN is to provide investors an opportunity to participate in most of the upside of markets while being protected from much of the downside. We will not catch all of the upside all of the time, nor we will not miss all of the downside, however by mitigating risk the long-term equation tends to work out well in our opinion.
For over three decades, most financial people have managed assets using a “strategic” asset allocation approach based upon Modern Portfolio Theory. That method uses historical asset class returns to build a mostly static portfolio based upon past performance. In effect, asset management that aims to hug a benchmark limits upside performance and does absolutely nothing to limit draw down of a managed account’s value.
Not only does the strategic asset allocation approach conflict with the industry disclaimer “past performance is not indicative of future results,” but it also fails to take into account the rapidly moving intertwined computerised markets of today. The real problem is that during correlated market downturns — meaning when many asset classes fall in unison — there is little benefit from the type of “diversification” that most investment people recommend.
My thesis for funds management is that capital flows around the globe to the markets and countries that are expected to provide the highest return, adjusted to risk of course. So this begins with movement among currencies, migrating down to bond markets, commodities and equity markets of the chosen country.
The primary premise or investment philosophy of the Barwon Investment Program is that if we get the US dollar right, we will tend to get a lot of other things right. Capital flows around the world at an increasing speed, therefore trends can end almost before they begin!
The Barwon Investment Program utilises multiple systematic, mechanical and precise trading models that have performed successfully over time. This investment approach has shown its ability to capture the big capital flow trends that occur in many investment assets. Previously used privately, GFIN is now offering this approach to its clients.