OLD IDEA, DIFFERENT APPROACH
Asset allocation is the foundation of any investor's long-term strategy. However, in our opinion, there are limits to traditional asset allocation approaches. Investors and investment advisors have seen that the "easy money" days of the 1980s and 1990s did not last forever. They also started to see the gaps in traditional asset allocation approaches. We aim to resolve that.
Emerald Asset Advisors' mission since inception was to provide a practical alternative to the traditional asset allocation solutions that Wall Street typically offered to investors. Specifically, we wanted to construct portfolios that produce the key benefits often found in hedge fund investing…
- An absolute return objective
- Low correlation to the global stock and bond markets
- Low volatility relative to the stock market
- Competitive upside capture with limited downside capture
- Flexible investment styles
…but without the issues inherent in the hedge fund Limited Partnership (LP) structure:
- Lock-ups and limited liquidity
- Lack of transparency and limited regulation
- Potential for excess leverage
- High investment minimums and high management fees
- Tax inefficiency
Our alternative approach centers around using carefully selected, specialized mutual funds and ETFs, which are priced and traded in the public securities markets each day. By doing so, we strive to combine the best of both worlds — hedged strategies in a liquid, transparent and cost effective format.
THE EAS GENESIS FUND - OVERVIEW
Our end goal is to achieve:
- Consistent positive returns with low volatility (Beta)
- Success that is less dependent on the market itself (R-squared)
- A smaller range of possible outcomes (Standard Deviation)
- As much of the global markets' upside but little of their downside (High up capture/Low down capture)
- Minimal losses that are short in duration and shallow in magnitude
