PHILOSOPHY

June 1, 2021

High volatility in global financial markets is expected over the coming years, requiring timely portfolio rebalancing.  To achieve this efficiently, each of the two strategies offered by GAI benefits from:

♦ Inherently leveraged synthetic products. 

Underlying long/short securities are investments in outperformance, hence resulting in LOWER premium costs.

In the case of The Precious Metals/Global Equities Fund, however, if it were known that the long and short sides would trend asymmetrically, the premium costs would be HIGHER.

Employing Dow or S&P index options to provide income as well as a hedge for investor portfolios, The Equity Index Income & Protection Fund represents a strategic and timely opportunity. Made to meet the challenges posed by today’s markets, this rules-based strategy seeks to provide superior profits, regardless the direction of the stock market.

Concerning the precious metals (PM) outperformance strategy, to one who believes that asymmetric performance will again become the new normal per the long term history of PMs and global equities, today's premium costs would again be viewed as cheap; these premium costs have approached their historic lows of ~18 months ago.

Indeed, GAI foresees asymmetric performance between PMs and global equities, and therefore views premiums as extremely undervalued in both asset classes.  Premium levels have again created extraordinary strategic opportunities, albeit in different contexts with respect to each of fund product offerings. 

The U.S. Equity Index Income & Protection Fund’s investment program is engineered to produce gains after positive quarters, though its principal design aims to generate 65 – 95% profits following sharp bear market-style declines, while deploying only 20% of the Strategy’s assets at a trade’s inception. This is evidenced by the backtests which, when viewed together, aim to benefit from any type of market that is foreseeable over any reasonable period of time. The rules-based Strategy, therefore, is engineered to be an all-season strategy.

Perceived pricing anomalies, which have led to two differentiated strategies, aim to protect investor portfolios via defined risk and asymmetrically performing strategies, thereby requiring little capital investment to achieve portfolio rebalancing at a time when client wealth is, effectively, inordinately exposed to a deflation in financial asset prices.

Given the nature of the products, coupled with market expectations, GAI provides investors with timely, strategic profit opportunities which, given the aforementioned volatility, should result in superior gains.