Stress Test Your Investment Strategy and Attract New Distribution!

The National Association of Active Investment Managers (NAAIM) has extended the deadline for investment managers to participate in the 2021 Active Investing Strategy (AIS) Competition, formerly known as the NAAIM “Shark Tank.” 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 in this virtual event are requested to submit a written application and present their strategy to the committee in the preliminary contest through June 4. Selected finalists will present their strategies in a virtual event on June 23 and 24, 2021. NAAIM AIS Competition preliminaries have been broadened to accept applications from members as well as non- members. Finalists will be required to become NAAIM members.

For Investment Managers who employ active strategies, competing in NAAIM’s AIS Competition provides exposure to a room full of Advisors, many of which are seeking viable sub-advisory relationships. It is 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 AIS Competition could provide the exposure necessary to take your business to the next level.

To learn more about the NAAIM organization and rules of the AIS Competition, check out the AIS Competition page on the NAAIM website.

All the best,

Mike

The Theta website will be offline during the morning of February 14, 2020 due to Theta’s move to a new address within the same building. This outage will affect not only the Theta home page, but also access for our investment managers and subscribers.

Our systems consultants will be on-site installing a new Internet connection that will be twice the speed of our current configuration, so look for response times to be even better in the future.

The move will not affect any of Theta’s contact information other than to change suite numbers from 200 to 100, as follows:

Theta Research

11719 FM 2244, Suite 100

Austin, TX 78738

(512) 628-5201

www.thetaresearch.com

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, Mike Mike Posey Marketing Director Theta Research, LLC (512) 826-5553 mike@thetaresearch.com

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.