Greetings!
Optimus vs. Peers
This is the 2nd part of a multi-part series showing Optimus strategies vs. our peers. Watch for each email as we provide helpful information we use to analyze our strategies.
The graphs below show the performance of Optimus strategies and our peers from July 1, 2009 through March 31, 2012. We are using this time period to show returns for the strategies after the big initial thrust from the March 2009 lows. Also of note is that with the Optimus strategies represented, their performance lines are a mix of hypothetical and live trading results.
Peer Analysis Part II - Equities-Based Strategies Category
Subcategory: Maximum 100% long stocks (Long-Only & Long-Short)
(Growth of $100,000)
The thick line represents our Optimus US Equities Bull/Bear Strategy, whereas the thin lines represent our peers. Our peers are represented by three equities-based Long-Only strategies and one equities-based Long-Short strategy. Our US Equities Bull/Bear Strategy has outperformed its peers and benchmark by a wide margin. Also, note that the majority of our peers are actually flat during this past cyclical bull market period.
Since this focused (non-diversified) strategy can go long or short equities and can be up to 100% invested in stocks, we do recommend an allocation no greater than 15%.
Subcategory: Optimus Strategy is maximum 25% to 75% long stocks (Long-Only & Long-Short)
This graph shows three Optimus Allocation Strategies with thick lines and peers with thin lines.
(Growth of $100,000)
Again, our peers are represented by three equities-based Long-Only strategies and one equities-based Long-Short strategy. All of our diversified (four Optimus strategies in one) Allocation Strategies have outperformed their peers and benchmarks. Keep in mind that this happened during a cyclical bull market when all of our peers can go 100% stocks and our Allocation Strategies are limited to 25% - 75% stocks.
Just a quick glance at the chart above clearly shows the difference between the relatively smooth lines of the Optimus Strategies versus the erratic, wild swings of their peers. By using multiple Optimus Strategies in each Allocation, we are able to drastically reduce the volatility of each model, while at the same time harnessing the performance potential from each individual strategy.
Be sure to watch for the next installment of our Peer Analysis series. Next, we'll be taking a look at our unique, short-only absolute return strategies. Unlike all of their peers, the Optimus Advantage (Short-Only) Strategies are up strongly during this same cyclical bull market. How can that be? Stay tuned.
If you are looking for the potential for strong performance with low-to-negative correlation to both the stock and bond markets, our Optimus Strategies may be just what you're looking for.
For more information regarding these or any of our other strategies, please scroll back up to the top and click on our advisor-only webpage link. |