As a boutique financial consulting firm that guides hedge funds, family offices and high-net-worth individuals around the world, we often get questions around our secret sauce, and this blog post touches a little more on that.
In the ultra-competitive financial markets, a recipe for mediocrity is following the same arbitrary decision-making behaviors as the crowd with an expectation that this will lead to outperformance. It is important to understand that human emotions/cognitive biases are often the largest impediment to success for the investor. Part of what defines us as long-term investors more than the investments we select, is the investments we reject.
At The Practical Contrarian, we are governed by proprietary fundamental research/minimum standards of safety to identify the securities that possess the best risk-adjusted investment opportunities in combination with the application of proprietary technical analysis to capture first principles of mean reversion to help navigate the wide range of potential market outcomes for securities of various asset classes.
Our rule-based system is based on an analytically-driven approach to identifying terminal extremes, institutional pools of support and resistance, clear shifts in control between the bulls and the bears, opportune entry and exit points, market convergences/divergences and well-specified breakouts with corresponding price targets.
If you’re interested in learning more about how our solutions can help you, let’s connect!