The overriding goal of a managed account is to decrease portfolio risk via non-correlation or negative correlation.
Imagine a portfolio that consists of two risky assets: one wins when the sun shines and the other wins when it rains. Combining both, one has a portfolio that always wins, regardless of whether it is sunny or raining. Now, add a third asset that wins when it is cloudy and, in combination, the portfolio covers all possibilities.
One of the key tenets of Modern Portfolio Theory, as developed by Nobel Prize Laureate Dr. Harry M. Markowitz, is that more efficient portfolios can be created by diversifying among asset categories with low to negative correlations. By diversifying a portfolio, it is possible to reduce risk while also increasing returns.
Recent fluctuations in world markets prove that long equity portfolios cannot make money during downward cycles. Positive portfolio performance can only be achieved with a fund that holds both long and short positions in order to limit losses and ensure gains in any economic environment.
So, why should you invest with Xtentus Ltd.?
- Diversification – The asset allocation of all Xtentus accounts provides excellent diversification
- Negative to low correlation – The Xtentus managed accounts have negative to low correlation to international stock markets
- Long-term capital growth – Xtentus accounts targets profits from declining as well as rising markets in order to generate long-term capital growth
- Xtentus trades worldwide Futures, Forex, Stocks, CFD’s, Bonds, Exchange Traded Funds in many financial centers around the globe
- Expert Technical Analysis
- Trend Following Strategies
- Money Management