True diversification is achieved by owning investments across multiple asset classes with low correlation to one another, but that hasn't worked over the past 18 months with stocks being "the only game in town." Is diversification dead or will "the knife cut both ways" for this style of investing? http://www.seasoninvestments.com/insights/is-diversification-dead/
The foundational principal of Diversification 2.0 is finding and investing in assets with low correlation to each other. A portfolio consisting of highly correlated investments is nothing more than a one directional bet on the future. The portfolio will do well in one particular environment but is exposed to a great number of risks if the world doesn't unfold as expected. http://www.seasoninvestments.com/insights/achieving-real-diversification/
There is a bull market in uncertainty that is unsettling for many but also creates opportunity for those willing to take the tide at the flood. This uncertainty is not unfounded, but it might be overpriced. Part of our job is to find the best way to take advantage of the “flood” in uncertainty. http://www.seasoninvestments.com/insights/taking-the-tide-at-the-flood/
A strategy that is market neutral takes both long and short positions in order to reduce the impact of the market while capturing the relative performance spread between the long and short portfolios. If executed correctly, market neutral strategies exhibit no correlation to stocks or bonds while delivering a unique return stream based purely on the manager skill. http://www.seasoninvestments.com/insights/value-investors-and-quants-unite/
Nassim Taleb defines antifragility as something that thrives from random and unexpected shocks. At Season Investments we search far and wide for assets that have the potential to exhibit antifragile characteristics. One such investment that we hold in the Absolute Return asset class is the 361 Managed Futures Strategy Fund. http://www.seasoninvestments.com/insights/micro-update-antifragile-investments/
