Darling Macro

We believe that investor behaviour and human emotion plays a pervasive role in the determination of market prices in the short to medium term. These behavioural risk factors exist because of the imperfect and not universally rational way investors attempt to forecast, and how investors: Evaluate macroeconomic risk factors within current prices; React to new information; and Measure and tolerate risk. We believe that these behavioral risk factors are more reliable predictors of asset prices in the short to medium term than merely analysing macroeconomic factors. The strategy involves a systematic assessment, of the risk and return potential of more than 30 global markets, which rigorously measures the following: Systematic and rigorous assessment of the risk and return potential of over 30 global markets, measuring: Returns: how strong are performance trends Volatility: how much risk is present Correlation: how much diversification is on offer Time: how stable are the measures of risk & performance The strategy systematically selects a blend of assets and optimises the portfolio based on risk to achieve relative stability of allocations. Transaction costs are minimised through the use of highly liquid passive instruments. Risk is designed to be controlled throughout the process and the strategy is rebalanced regularly based on changes in the assessed risk and return.