At Atlas, we strive to help clients reach their wealth preservation objectives. We also want clients to understand the disciplines we follow, the instruments we use , and the risks we take coincident with managing their money. We will periodically add content to this section when we find relevant material or ideas that will assist our clients.
Conceptually, we believe in the philosophy of investing for the long term by allocating capital across a diversified pool of risk exposures. We choose assets that typically show dissimilar performance profiles with correlations less than 1. While we subscribe to some of the concepts dictated by Modern Portfolio Theory, we recognize the limitations of taking theory and applying it to real world portfolio management. Nonetheless, we do construct portfolios to diversify and mitigate risk with an objective to maximize return.
The matrix chart below represents the correlations amongst various asset choices over the last twelve months. Asset classes that have high correlations of returns with each other are represented by dark red pigment while those combinations with low correlation relationships show dark blue pigment. These relationships may change over time, especially if viewed through a fairly narrow time frame window. Click on the image to enlarge and examine some of the recent correlations.
12-Month Correlation of the Global Assets:
LIBOR Forward “Hair” Chart:
