In this issue of Theta News, I want to announce the addition of two new strategies to the Theta database. One model is from a new Investment Manager and the other is from one of our existing model developers.
Our newest Investment Manager is Ben Reppond of Reppond Investments, Inc. in Bigfork, Montana. Ben has established a tracking account for his Diversified Conservative Strategy. Theta Research has independently reconstructed this strategy’s actual performance back to its inception date of February 1, 2018.
Existing Manager, David B Daughtrey, owner and portfolio manager of Copperwynd Financial, LLC, has submitted another model for tracking. The newest program is called the 10-Stock Momentum Strategy and is the sixth model being tracked for Copperwynd. Theta Research has independently verified the actual track record of this strategy back to its inception date of April 1, 2017.
All the best,
Theta Research, LLC
Theta is pleased to announce nine new strategies that have been added to our list of tracked models. What’s unique about these additional models is that they were all developed by existing managers on Theta Research.
In the past, I have discussed the importance of investment managers developing multiple models. The recent volatility in the stock market has made a lot of investors nervous, so I think it would be beneficial to revisit the importance of managers developing multiple strategies in today’s Theta News.
The development of active investment management strategies is no small feat. Investment Managers who develop quantitative formulas and trading systems must not only have a keen sense of the interrelationships inherent in the markets, but also must be students of investor behavior, especially during periods of extreme highs and lows in the markets.
Most of all, however, active managers must have an abiding belief in the ability to maximize gains and/or minimize losses over and above what is available in a passive, buy-and-hold portfolio. Theta Research is built upon the idea that risk management is an attainable goal as evidenced by the actual performance of real-time trading accounts tracked in the Theta database.
Since there is no single “Holy Grail” tactical investment strategy out there, most active managers build multiple systems designed to address one or more facet of the market. These typically include such factors as trading a specific asset class or sector, moving to cash in down markets, or even long/short strategies based on one of the major stock market indices, etc.
These systems also often include complex algorithms that incorporate trend following, rotational, mean reversion, momentum, technical analysis and a myriad of other techniques.
In some cases, Managers combine their strategies with others of their own, or even of other Investment Managers to illustrate a composite portfolio. In this way, Managers can leverage their own knowledge and expertise with that of other sophisticated professionals. Theta Research makes it easy to illustrate such a composite portfolio as part of our Professional Subscription. See the Subscriptions tab on the Theta home page for more information about this subscription feature.
The bottom line is that Investment Managers with multiple strategies are an important resource, allowing for additional diversification in client portfolios.
Now, let’s explore some of the new strategies that have most recently been added by four of our existing Theta Investment Managers:
Paul Glance, PhD, and son, Brian, of Glance Financial Advisors in Troy, MI announce the replacement of their Glance USO strategy with Glance XXX. This new strategy trades stocks, futures and options as directed by proprietary quantitative computer signals developed by Glance Financial. Theta Research has independently verified the track record of this trading model back to its inception date of January 1, 2018.
Another existing Manager, Robert F. (Bob) Thompson of Bay Capital Securities has established a tracking account for his Silk Purse Strategy. This is an aggressive model that trades high-volatility equities long and short using leverage. Theta has documented and verified the actual performance of the Silk Purse strategy back to its inception date of December 01, 2017.
Also adding a new strategy is Bruce DeLaurentis, owner and portfolio manager of Kensington Analytics in San Juan, Puerto Rico. The new program is called the Convertible Income Strategy and is based on a quantitative, trend-following model that seeks to take advantage of the merger of equity and bond characteristics found in convertible bonds. Theta Research has independently verified the actual performance of this strategy back to its inception date of January 1, 2015.
And last but not least, existing Investment Managers, Steve Rumsey and Paul Hewitt of Optimus Advisory Group in Irvine, CA announce the addition of six strategies for tracking purposes. While new to Theta Research, these strategies all have at least two years of actual trading history, which Theta has independently verified back to their respective inception dates. The Optimus strategy names and inception dates of each model are as follows:
Bond Rotation March 01, 2014
Dynamic Equity January 01, 2016
Equity Rotation January 01, 2016
Global Advantage April 01, 2012
Global Long/Short August 01, 2013
Hedged Equity January 01, 2016
When we asked Steve why he was taking the step to have so many of his existing strategies tracked by Theta Research, he replied:
“Due diligence professionals are increasingly requesting actual performance that has been third-party verified. Theta Research fills this need in a way that we find to be integral with our future success.”
We, too are hearing more and more about investment managers being asked for performance that has been third-party verified. Don’t wait for a due diligence team to ask you for verified performance. Call or e-mail Theta Research today to get the ball rolling on tracking and verifying your actual investment returns.
I recently announced major Theta website enhancements in an issue of Theta News. Never ones to be idle, our IT team has continued to work on even more enhancements, a few of which I am pleased to share with you today.
As you review these most recent enhancements, notice that they include improvements to both the Subscription and Manager websites, thus making it easier to not only find and compare active investment strategies on the database, but also to manage your own strategies if you are among our tracked models.
Here are our most recent improvements:
* On both the subscriber and manager sites, we have upgraded our benchmark for the Barclays Aggregate Bond Index to the Vanguard Total Bond Market Index Fund (VBMFX). This replaces the iShares Bond ETF (AGG) benchmark which can drift significantly. We’re also proud to announce that this change was the result of direct input from one of our tracked Investment Managers.
* Another manager requested modification was to use the S&P 500 Total Return Index rather than the price index on both the Subscription and Manager websites.
* And yet another subscriber-requested improvement is to offer a 50/50 Equity/Bond benchmark in addition to the existing 60/40 allocation.
* Switching over to the Manager side, we have enhanced the use of our unique Guest Pass feature by allowing Managers to enter a date range to review.
Just as a reminder, here are all of the other recently announced enhancements to the Theta Research Subscriber Site:
• Complete Site Face Lift – Font sizes have been increased and color schemes standardized, making data and analytics easier to read;
• Enhanced Report Formats – Page layouts are now simple, clean and efficient;
• Faster Page Loading – Data retrieval and metric calculation speed have been dramatically increased, especially for models with long track records;
• Standardized Performance Rankings – All rankings are now based on month-end values;
• Daily Performance Still Available – For those strategies tracked on a daily basis, detailed statistics and analytics are still available on the individual program pages;
• Easy to Navigate Model Statistics – Tabbed pages make it easier to find performance and risk statistics for all models;
• Mobile Device Friendly – Now you can check in with your favorite Investment Managers and run ranking reports using your smart phone or other mobile device; and
• Expanded Analytics – Added benchmarks and statistical analytics are available to aid in evaluation and comparison of model.
We here at Theta Research are excited about our new, streamlined websites. The bottom line is if you are not taking advantage of Theta’s subscription services, you’re really missing out. If nothing else, the recent market volatility should convince you of the need for strategies with the flexibility to move in and out of the markets.
To learn more, check out our Subscription Page describing both our Professional and Basic subscriptions options. The bottom line is that you can have access to some of the most well-known active managers in the industry all for a cost as little as $195. So, what are you waiting for? The next market correction could be a real bear!
NAAIM Issues Renewed Call for “Shark Tank” Competitors
The National Association of Active Investment Managers (NAAIM) has issued a renewed call for competitors for its “Shark Tank” competition. Since 2013, this unique challenge has allowed NAAIM Members to gain exposure to new ideas employing active management strategies, possibly leading to new business relationships.
Investment managers wishing to participate are requested to submit video presentations along with a written application to the committee for consideration to present in the finals at Uncommon Knowledge 2018, April 23-25 in Orlando, FL at the Wyndham Grand Resort Bonnet Creek. NAAIM Shark Tank preliminaries have been broadened to accept applications and videos from members as well as non- members.
For Investment Managers who employ active strategies, competing in NAAIM’s Shark Tank competition provides exposure to a room full of Advisors, many of which are seeking viable sub-advisory relationships. It’s an opportunity to describe your investment approach to the markets in your own words and answer questions posed by a panel of seasoned professionals.
The opportunity to present your active strategy to other Advisors representing literally billions of dollars of client assets doesn’t come around every day. The NAAIM Shark Tank could provide the exposure necessary to take your business to the next level.
We hope to see you at the upcoming NAAIM Conference!
Theta Adds More New Strategies
Theta Research is pleased to announce the addition of three more actively managed strategies seeking third-party track record verification. All of these come from active management firms new to Theta and include the following:
Don Larsen, founder of Momentum Systems in Palm Springs, CA has submitted a new strategy for performance tracking. The strategy, also called Momentum Systems began trading on February 1, 2018. Theta will begin tracking upon receipt of February statements and the strategy will show up on the database once it has three months of actual trading history.
Vernon Bell, President of Texas Elite Advisory, LLC in Plano, Texas has initiated tracking of the Elite Relative Value Strategy. Theta has independently verified the actual performance of this model going back to its inception in May of 2008.
Randal Bailey, founder of Strategic Portfolio Management, Inc. of Canton, OH has submitted his Short Option Income strategy for tracking. Theta Research has independently verified the actual performance of this strategy back to its original inception date of October 1, 2015.
Stay Tuned – More New Strategies are on Their Way
One of the benefits of the Theta Research database of actual performance is that it is not a static list of the same old names and numbers. Instead, Theta has many new strategies in various stages of completion which will join the database of active Investment Managers in the near future. So, be on the lookout for our Theta News notices as they may contain just the Investment Manager you’re looking for.