10 points to understand AnnualCycles
Our background and principles
1. We have been studying the seasonal behaviour of assets to identify and understand annual cycles since 2005. So far we have studied the last 25 years of 400 of the main assets, and we are always adding more.
2. We have found that most assets concentrate large rises and falls in specific periods of the year. Once the causes are understood, we evaluate to what extent we can expect the pattern to repeat itself in the future.
3. We have concluded that an investment fund that takes advantage of the annual cycles of assets will be more profitable than other funds whilst taking on considerably less risk.
The specific characteristics of our fund
4. A mixed fund: we look for investment opportunities of the maximum quality and performance both in fixed income (which is also cyclical) and variable income.
5. A flexible fund: we analyse the situation at any given time with our own studies in order to determine the most appropriate level of exposure to the market in variable income.
6. A global fund: as a fund looking for the maximum performance in the long term, a global perspective is required. We look for the most attractive markets at each moment in time with the aim of reaching the greatest profitability in the long term.
The three big differences between AnnualCycles and traditional funds
7. The extent to which we expose ourselves to the market depends largely on the period of the year. For example, our strategy is very different in April (which has 55% days in the upward phase) to what it is in November (when only 45% of days are in the upward phase).
8. The decision to buy or sell a particular asset is based on a change in the tendency within an annual cycle from an upward phase to a downward phase or vice versa.
9. We invest in a wide range of different assets which have cycles that are out of phase with one another. In other words, we take advantage of the upward phases of different assets that occur at different moments of they year to move our capital tactically and, in this way, to always be invested where the greatest yield is to be expected in each moment. We can reduce volatility by at the same time going short in assets that are in their downward phases and long in assets that are in their upward phases.
Adapting to change
10. However good our studies are, and despite the fact that our approach is backed up by positive results, we can never be so confident as to ignore the need for a diversified portfolio and a prior analysis of each investment, nor can we be so dogmatic as not to take advantage of other opportunities when they appear.
We follow the market environment closely and we are sufficiently flexible as to be able to introduce variants whenever they are seen to be necessary.
We are convinced that our fund will give spectacular results in the long run. Although the statistics don't always give what they promise, it is foolhardy indeed to ignore their incessant noise.
10 points to understand AnnualCycles
Our background and principles
1. We have been studying the seasonal behaviour of assets to identify and understand annual cycles since 2005. So far we have studied the last 25 years of 400 of the main assets, and we are always adding more.
2. We have found that most assets concentrate large rises and falls in specific periods of the year. Once the causes are understood, we evaluate to what extent we can expect the pattern to repeat itself in the future.
3. We have concluded that an investment fund that takes advantage of the annual cycles of assets will be more profitable than other funds whilst taking on considerably less risk.
The specific characteristics of our fund
4. A mixed fund: we look for investment opportunities of the maximum quality and performance both in fixed income (which is also cyclical) and variable income.
5. A flexible fund: we analyse the situation at any given time with our own studies in order to determine the most appropriate level of exposure to the market in variable income.
6. A global fund: as a fund looking for the maximum performance in the long term, a global perspective is required. We look for the most attractive markets at each moment in time with the aim of reaching the greatest profitability in the long term.
The three big differences between AnnualCycles and traditional funds
7. The extent to which we expose ourselves to the market depends largely on the period of the year. For example, our strategy is very different in April (which has 55% days in the upward phase) to what it is in November (when only 45% of days are in the upward phase).
8. The decision to buy or sell a particular asset is based on a change in the tendency within an annual cycle from an upward phase to a downward phase or vice versa.
9. We invest in a wide range of different assets which have cycles that are out of phase with one another. In other words, we take advantage of the upward phases of different assets that occur at different moments of they year to move our capital tactically and, in this way, to always be invested where the greatest yield is to be expected in each moment. We can reduce volatility by at the same time going short in assets that are in their downward phases and long in assets that are in their upward phases.
Adapting to change
10. However good our studies are, and despite the fact that our approach is backed up by positive results, we can never be so confident as to ignore the need for a diversified portfolio and a prior analysis of each investment, nor can we be so dogmatic as not to take advantage of other opportunities when they appear.
We follow the market environment closely and we are sufficiently flexible as to be able to introduce variants whenever they are seen to be necessary.
We are convinced that our fund will give spectacular results in the long run. Although the statistics don't always give what they promise, it is foolhardy indeed to ignore their incessant noise.
