Robust Methods

A seasoned money manager and pioneer of Robust Portfolio Management, Robust Methods' mission is to generate investment returns that do not expose the portfolio to significant systemic risk. Towards this goal, they follow an opportunistic investment approach aimed at the global liquid markets. It is the manager’s opinion that systemic risk remains under-priced, and has dramatically increased since the 2008 collapse of the banks. While the investment approach at Robust Methods began as a quantitative strategy in 2005, it became imperative to revamp the strategy after the Federal Reserve started printing trillions of dollars from thin air, and which is packaged as Quantitative Easing (QE). This allowed the centralized financial entity to buy the markets it wants to buy, sell those it wants to sell, and set the prices of the major markets at certain levels. As a result, both fundamental and technical approaches to investing became practically irrelevant. With QE supposed to be a one-time exception after the 2008 crash, it has become a regular routine of market interventions and debt monetization with illicit funds – now going well into 2015. Robust Methods’ opinion is that today’s market prices no longer represent the balance between supply and demand, and as the price discovery mechanism has been severed; the financial markets have lost the good part of their freedom as a result of the Fed’s actions. Suppressing the markets for so long and by so much cannot be sustainable based on historical precedents. It is the manager’s belief that an epic failure is in the making unfolding from here. Robust Methods is now focused on turning this inevitable outcome into major investment returns for its clients. The portfolio is strategically positioned to fulfill this goal.