INVESTMENT STRATEGIES
Profiting from inflation
History tells us, time and time again, that when governments overspend this always means inflation. From the time of the Roman Empire to the Weimar Republic, Yugoslavia, Argentina, Brazil, and even Britain in the "Winter of Discontent," there are certain industry sectors that always profit from inflation, such as food production, energy & fuel, banking, commodities, and more. We only invest in positions designed to profit from inflation and high prices in fuel, energy, and food.
Portfolio income generation
While we follow Value / Contrarian investment strategies, we also mitigate risk by holding positions that pay dividends. We seek companies with strong fundamentals and use leverage to increase our returns. The objective is to buy stocks with a high dividend yield, and then sell them when they appreciate in value so that we can buy other stocks to repeat the process, picking up increased dividends as we go. By insisting on dividends, our managers ensure that some form of profit is expected even during adverse market conditions.
Covered calls & stock leasing
Another form of income for our fund that we can leverage is selling covered calls. These low-risk options help us to lock-in profits when stock prices go up. Covered calls also pay cash even when the market is going down. Along with this is stock leasing. For certain qualified positions, we can lease our stock to speculative investors who are required to hold positions they do not own. This can provide additional income to our dividend stocks, allowing us to achieve strong portfolio income after we leverage our capital to intensify these conservative returns.
Trading algorithms
We may make use of two different types of trading algorithms, stealth algorithms and an intuitive machine learning algorithm that has been adapted by our staff in a proprietary form that is uniquely ours. The stealth algorithm allows us to buy or sell large positions without the market noticing us moving into or out of these stocks. This is the same technology that allows a 79-ton Stealth Bomber to look like a flock of birds on the radar. Our proprietary trading algorithm has yielded over 1,700% in annual capital gains during back-modeling and bench testing (see image, left) on a Value/Contrarian buy list.