Prometheus Asset Allocation
Video Update: New Positions
We are very excited to announce that our Prometheus Asset Allocation Strategy will be available for subscription exclusively via Substack starting next month! This long-only strategy aims to outperform a traditional stock and bond portfolio through macro timing by rebalancing once a month. Trading only three ETFs, this portfolio is the easiest way to infuse elite macro tools into your investment process.
In good faith, we share the first of our monthly video updates, which subscribers will receive at the start of each month, along with a few other research materials. In it, our founder, Aahan, discusses our big-picture views and positioning for the next month:
For those unfamiliar, we run three systematic strategies, each for a different target audience:
Alpha Strategies: Aims to generate uncorrelated long/short macro alpha. Available to institutional clients only. Daily signals.
ETF Portfolio: Beta + Alpha. Attractive return-on-risk versus cash, with drawdowns controlled to 15%. Weekly signals.
Asset Allocation: Long-only allocation to stocks, commodities, and levered bonds. An alternative to a traditional 60/40 portfolio. Monthly signals.
Asset allocation is best suited to those investors who want a long-only, easy-to-manage allocation process. This strategy is a strong alternative to traditional passive portfolios in an environment of elevated macro volatility.
Another step towards the democratization of finance. Until next time.
Asset prices are expectations future macro conditions. What matters is when those expectations change, and what drivers those changes and big shifts in the economy. If you recognise big shifts/get ahead of them, you can make big gains for your investment strategies.
Andy is a friend and we have respect for his views. That said, argument from DS is fine, but it’s also circular. It amounts to stocks go down because stocks go down. That’s fine, but by adding the extra complexity, you decrease your signal
It seems you are saying real economic conditions drive capital markets. Andy Constan of Damp Spring says bond yields spiking will hurt stocks creating negative wealth effect, reduce people’s ability to borrow and spend, slowing down economic activities, employment, and consumption, thus ending inflation. The Fed guy Joseph Wang says stocks will prove to be resilient against high yields for a long time just as the housing boom up until 2007 GFC.