Portfolio construction – Lower beta with alpha from 'dynamic hedging'
- Diversification with non-correlated assets (as measured by beta) reduces portfolio risk.
- Beta can change with different market conditions and may not be a reliable future indicator. Look for “safe haven” assets.
- A fund with demonstrated 'alpha' consistently beats its benchmark with 'excess' returns, improving the portfolio’s risk-adjusted returns.
Since our inception in December 2010 Gyrostat Class A Units have a track record of no quarterly downside exceeding our quarterly pre-defined loss limit of 3%.