"Pashfiata" may sound like the name of Italian sports car, but it is actually an acronym that describes the various elements of our specialized investment philosophy:

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PA = Passive/Active

(We endorse the use of both passive index ETFs and individual securities)

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SH = Semi-hedged

(We endorse the use of hedging techniques to mitigate capital losses)

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FI = Fully Integrated

(Each component of the strategy should be selected to complement the other two)

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ATA = Adaptive Tactical Allocation

(We endorse the allocation to specific asset classes, economic sectors and/or industries in response to the prevailing economic environment)

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The Philosophy Is Based Upon 3 Principles:

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Know The Globe

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Respect The Cycles

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Position For Change

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By knowing the globe in terms of economic, currency & investor sentiment conditions, we feel tactical allocations should be made within the Global Contrarian portion of a portfolio. This should be achieved primarily through the use of sector/industry/country passive index ETFs.

 

The overall risk profile of a portfolio should be adjusted over time via a Risk-Shaping allocation

that respects the inevitable cycles caused by recessions, bear markets and unforeseeable

"black swans."

 

Technological innovation is a major driver of global economic activity so one should position for change by actively investing in companies with above average sales growth and financial strength that are creating/benefiting from advances in areas of rapid innovative such as nanotechnology, biotechnology, robotics, information technology and/or cognitive science (both human brain and artificial intelligence). We refer to this aspect of the philosophy as NSP Growth ("no science projects"). 

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