...is constantly evolving. An old photo is unmistakably an old photo. The things we do, the things we use and the things we value today are not the things we did, used and valued in the past.
It all starts with an idea. The idea to roast a coffee bean to create a stimulating drink. The idea to make wagons ride on a rail track. The idea to connect computers into an internet. The idea to use wind as a clean source of energy. Or the idea that windmills pollute the horizon. The idea that countries can prosper by working together, opening their borders and sharing a currency. Or the idea to close borders to keep threats out.
is all just an idea. It has no impact if nobody buys it, nobody uses
it, nobody votes for it. But every time people do run after an idea, the
world changes. Our world is shaped by people running after ideas.
Our markets are fueled by people running after ideas.
...are the places where supply meets demand. Where people willing to buy meet people willing to sell. Some people buy to fulfill their immediate demand. Others sell to offload their supply. Some people buy or sell to offset their risk. Others buy or sell to take on that risk, anticipating expected demand and expected supply. Our markets are in a constant search for equilibrium.
A reached equilibrium, however, typically does not persist. Time and again, all sorts of factors temporarily disrupt supply or demand. And even more importantly, people running after ideas create new flows of demand and new flows of supply. Our markets are fueled by people running after ideas.
...navigate these flows of supply and demand. As
investors we are in the market to take on risk. We realize that in order
to be rewarded, we have to maneuver our positions in the direction
where future demand and future supply will meet. These future levels of
supply and demand, however, are unknown to us. Just like they are
unknown to everybody else. What guides us?
Given that our world changes, we know that markets tend not to revert to a previous equilibrium. We recognize the importance of ideas. Although we might occasionally have strong personal opinions about some of those ideas, we realize that our opinions do not matter. It is the force of people running after ideas that counts. Trying to counter that force does not pay. In our investing we respect that force. Therefore, our investment strategies are guided by the footprints left by people running after ideas. That is, the prices they set in the market.
History doesn't repeat itself, but it does rhyme.
Our investment ideas are implemented in two trading
programs: a diversified trend following managed futures program and a
directional long/short equity program. The objective of both programs is
to deliver attractive risk-adjusted returns uncorrelated to the
major asset classes, while investing in a responsible manner, contributing to
the stability of the markets we participate in.
of our strategies are active, absolute return strategies. They do not
use benchmarks. Our strategies are designed to be able to do well in
times of market stress, especially those accompanied with declining
stock markets. They have demonstrated this ability to generate 'crisis
alpha' multiple times in the past, offering a source of
diversification to many institutional and private investment portfolios.
We invest in a responsible manner. At Transtrend, this means
being an active investor, conscious of the role we have in the
marketplace, aware of the impact we can have on markets, and aware of
the fundamental role that markets have in our society.