Theta is pleased to announce five new additions to our list of tracked models. Two of these strategies come from one Investment Manager new to Theta and three have been submitted by Managers who already have active tracking accounts on the Theta database. With that being said, I think it would be beneficial to provide a brief analysis of why multiple strategies from a single Manager is significant.
The development of active investment management strategies is no small feat. Financial professionals who develop quantitative formulas and trading systems must not only have a keen sense of the interrelationships inherent in the markets, they must also they must also 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” active investment strategy out there, most active managers build multiple systems designed to address one or more facet of the market, such as trading a specific asset class, 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. Give us a call to learn more about this subscription feature.
Now, let’s explore some of the strategies that have most recently been tracked by Theta:
Models Added by Existing Investment Managers on Theta:
Werner Keller, CFA of Keller Partners in Channel Islands, CA is an existing Theta Manager. Werner has recently established tracking of his Active Mega-Cap Strategy. While the Mega-Cap Strategy is new to us, it’s not a new concept. Theta has tracked and independently verified the actual performance of this model back to its inception of October 1, 2012.
Another current Theta Investment Manager, David Daughtery, CFA, CFP, founder of Copperwynd Financial, LLC has added two new strategies. The Total Return Income Model began actual trading on April 1, 2015 while the Rotational Strategy began actual trading on December 1, 2014. Theta Research has independently verified the actual performance of these strategies back to their respective inception dates.
New Investment Manager Added to the Theta Database:
Our most recent Investment Manager addition is Christian J. Cyr, CPA, MBA, Founder of Cyr Financial Wealth Advisors. Chris has established tracking accounts for two strategies – Dynamax 1X and Dynamax Low Volatility. Theta Research has independently documented and verified the track records of these two models back to their common inception date of January 1, 2016.