While Theta Research is well known for its ability to verify historical track records generated by established Investment Managers, we are also often called upon to track brand-new strategies, what you might call “ground-floor opportunities.”

In today’s Theta News, we have a variety of such opportunities, both from an existing Theta Manager as well as those new to Theta’s tracking database. As you review these new strategies, keep the following in mind:

  1. New strategies don’t necessarily mean an inexperienced manager. Experienced Managers often developnew strategies. In addition, even Managers who may not have been trading a long time often have prior experience that gives them a fresh approach to the market;
  2. New investment strategies developed by veteran Managers allow you to take advantage of the Manager’s knowledge base and trading experience. It also allows you to review the Manager’s other strategies and their track records, which are often also tracked by Theta Research;
  3. New strategies have not been developed in a vacuum. Most have been subjected to extensive backtesting. While we all know that backtesting has its limits and can’t guarantee future results, it’s all that Managers have to demonstrate new concepts until they build up an actual track record;
  4. While there are obviously no guarantees, getting in on a ground-floor opportunity may lead to superior performance. We have all noticed that some Managers produce their best returns in the early years of their existence. There are a lot of reasons this may occur, but just because a strategy is new doesn’t mean it doesn’t have merit; and
  5. Being tracked by Theta shows the Manager has confidence. Since Theta charges a fee for its actual performance tracking service, Managers with new strategies who are willing to pay to be tracked show that they have confidence in their strategies.

As you review the information below about the ground-floor opportunities on Theta, remember that strategy names and data do not show up on the Theta database until after they have at least three months of actual trading history.

Ground-Floor Opportunities for Your Review

Veteran Theta Manager, Len Fox, founder of Scarecrow Trading, Inc. in Savage, MN has initiated tracking on two new Rydex-based strategies called NAAIM Indicator Wall 1X and NAAIM Indicator Wall 2X. These strategies seek to capture the actual performance of the proprietary “Indicator Wall” sponsored by the National Association of Active Investment Managers (“NAAIM”). While NAAIM has been publishing the Indicator Wall only to its members for 18 months or so, this is the first time it will be traded in a real-money trading account for tracking purposes.

Theta Research began tracking both Indicator Wall strategies as of the inception date of trading on November 28, 2016.

Charles R. (Randy) Snook, CFP, CLU, ChFC, CLTC, founder of Snook Asset Management, Inc. of Cedar Rapids, IA is pleased to announce the tracking of five new strategies, all of which are part of his Dynamic Asset Rebalancing (DARe™) series. The names and custodian of each model is as follows:

DARe Rydex Sector - traded at Guggenheim/Rydex Funds

DARe Rydex Pure Style – traded at Guggenheim Rydex Funds

DARe Rydex Pure Style / Inverse Index also traded at Guggenheim Rydex Funds

DARe International Country ETF – traded at Pershing

DARe Bond Sector Long/Short – traded at Pershing

The DARe Rydex-based strategies will be tracked on a daily basis while those traded at Pershing will be tracked monthly. Theta began trading these new strategies as of their inception dates in November and December of 2016.

Another New Investment Manager Joins the Theta Database

New Investment Manager, Michael Choniski, founder and Managing Director of Trendhaven Investment Management, LLC of Brookfield, CT has initiated tracking of his Trendhaven Managed Risk strategy. This strategy has the benefit of an existing track record of actual performance which Theta has independently verified back to its original inception date of April of 2014.

Posted by MPosey on 12-07-2016 in Company NewsPermalink