STRATEGIES FOR OVERCOMING A LOW RETURN ENVIRONMENT
Overview
Stretched valuations in equities and fixed income imply depressed returns and higher potential volatility for traditional portfolios.
Reaching for yield or increasing exposure to pro-cyclical assets may help compensate for low expected returns, but can increase portfolio risk.
Reducing exposure to equities and bonds to accommodate non-correlated assets or alternative strategies may reduce risk, but at the expense of lower potential returns and painful tracking error.
We introduce a novel investment concept, accessible to all investors, which is designed to seek higher returns with less risk and low tracking error by using new products which, in combination, can provide more than $1 of exposure for every dollar invested.
The proposed solution harnesses the full potential of traditional portfolios plus the opportunity for higher returns and risk reduction from non-correlated investments.
This capital efficiency allows for the introduction of non-correlated return streams that stack on top of core portfolio exposures.
We show how to maximize “Return Stacking” opportunities by choosing alternative fund managers already engaging in capital efficient strategies.
You are about to leave the Newfound Research LLC website and are being re-directed to the Newfound Research Mutual Funds website. Please note that Newfound Research Mutual Funds site may be subject to rules and regulations that may differ significantly from those to which the Newfound Research website is subject and may not be appropriate for use by residents in all jurisdictions.
You are about to leave the Newfound Research LLC website. The following link may contain information concerning investments, products or other information. Newfound Research LLC is not responsible for the accuracy or completeness of information on non-affiliated websites and does not make any representation regarding the advisability of investing in any investment fund or other investment product or vehicle. Importantly, Newfound Research LLC is not compensated for linking you to any non-affiliated website and instead is only compensated with an asset-based fee in the limited capacities as either a licensor of intellectual property or a sub-adviser to an investment adviser. The material available on non-affiliated websites has been produced by entities that are not affiliated with Newfound Research LLC. Descriptions of, references to, or links to products or publications within any non-affiliated linked website does not imply endorsement or recommendation of that product or publication by Newfound Research LLC. Any opinions or recommendations from non-affiliated websites are solely those of the independent providers and are not the opinions or recommendations of Newfound Research LLC, which is not responsible for any inaccuracies or errors. THIS INFORMATION IS NOT AN OFFER TO BUY OR A SOLICITATION TO SELL ANY SECURITY OR INVESTMENT PRODUCT. SUCH AN OFFER OR SOLICITATION IS MADE ONLY BY THE SECURITIES’ OR INVESTMENT PRODUCTS’ ISSUER OR SPONSOR THROUGH A PROSPECTUS OR OTHER OFFERING DOCUMENTATION.
