The objective of tail-risk investing is to protect investment portfolios from highly adverse events in capital markets, like a major stock-market crash or a sustained bear market. Such events can surpass our expectations as the following chart shows:
Solutions including active hedging of equity and/or treasury exposure as well as exposure to major trends in key commodity markets like precious metals, energy, agricultural commodities or even crypto-currencies.
The key to generating value from tail-risk allocations is the ability to capture value from extreme price events which represent the greatest source of risk for investors. These events invariably unfold as trends that can span many weeks, months, and even years. The ability to offset some losses from adverse events can substantially improve the performance of investment portfolios.
Thanks to I-System Trend Following we can propose a fully transparent, systematic and thoroughly documented solution for dependable tail-risk management without recourse to human expertise or other forms of research.
I-System strategies have a well-documented, audited track record of capturing value from large-scale adverse market events which has enabled us for example, to generate a 27% positive net return through the 2008 bear market.
Whether we are talking about stocks and bonds, or commodities like Gold, Silver, Copper, or Crude Oil, I-System strategies virtually never fail to catch the right side of major market trends.