WHY OUR PORTFOLIOS ARE SUCCESSFUL

By thinking "outside-the-box", we balance what appears to make sense in the prevailing market wisdom (such as commoditized mortgage-backed securities) with a contrarian's counter-intuitive strategy.

Finding the major market moves that leads to out-performance comes from seeing what the consensus does not notice. We observe the parallels of historic and current cycles. We separate our firm by determining and capitalizing on what is different from history this time. We believe these mainly undiscovered trends are low risk investments with enormous upside potential.

For example, before and during the bursting of the technology bubble, instead of traditional asset allocation, we held only fixed income and value stocks. As a result, our portfolios did not lose money.

Beginning in 2006, our portfolios have been void of financial equities and instead have capitalized on the long-term commodity super-cycle.

August 2007, one month prior to the liquidity crisis announcement, we began short-selling the financial stock index and the consumer indexes.