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What are these
patented processes? -- page 1 of 2 -- allocation-strategy selection
(Excerpt -
Water Street Advisers Form ADV Part 2 – Schedule F – Methods of
Investment Analysis 4(a))
The management
of an investment portfolio involves (2) processes – first
one must choose a method for apportioning the portfolio among the
assets available within a $50 trillion global market for
securities – one must select an asset allocation strategy.
Then
one selects for the investments with which to populate this
strategy.
Water Street
selects for an asset allocation strategy that balances the initial
assets equally across the market sectors existent in this global
market. This "balanced" strategy is one that, by definition, operates at a
moderate level of risk – specifically at a level of risk slightly
less than the midpoint
between that of the least risky and most risky allocation
alternatives available for any investment period.
This selection
methodology runs counter to existing industry practices focused on
methods to anticipate and exploit imbalances in market sector
performance. These exploitative methods can be shown to be useless
absent a special talent for predicting the future -- the only
necessary tool for this proof being a method for comparing whole populations of these
strategies using standardized measures over time to ensure an
"apples-to-apples" comparison.
The
industry’s myopia in promoting predictive methods in lieu of the
development of selection processes built on these standardized
measures opens up the opportunity to create these processes as novel
and unique. Having taken this opportunity, I applied for and have been granted the
following patent:
A Process to
generate standardized measurements of comparative performance
statistics for whole populations of asset allocation
alternatives.
continued
on page
2 |
