Our Business Investment:
GL Markets believes the goal of equity portfolios should be to outperform the broad market. Exposure to economic sectors will roughly approximate those of the benchmark. Our view is that any deviation from the benchmark represents a bet, or in our case, a calculated risk that will determine over or under performance. Portfolios will also maintain market cap exposure to large and small securities. Like weightings to economic sectors, the weight of the portfolio allocated to large, medium, or small stocks represents a bet relative to the benchmark
We believe our process will be successful in the future for the following reasons:
- It provides the opportunity to outperform the market without taking undue risks.
- It does not concentrate heavily in a narrow segment of the market (e.g. small cap growth stocks, energy stocks, telecom stocks), thus portfolios are more likely to maintain a stable asset base when certain areas rotate out of favor and prompt redemptions.
- It simplifies investor’s portfolios by reducing the number of managers or funds they need in their overall asset allocation.
- It has reduced risks by providing insurance to all investors and the invested capital.