3rd Discipline – Rebalancing

All firms espouse the value of REBALANCING and they all offer the service at various intervals convenient to their business cycles. Some do so quarterly, some annually. Regardless of the market cycle or the asset classes you hold, or the condition of the market at that particular point in time, they’ll return your portfolio to its originally intended allocations.

We REBALANCE exclusively at the predetermined points of strategic advantage achieved in our second discipline, INVERSE CORRELATION. History has shown us that applying our third discipline in accordance with our TRIPLE DISCIPLINE INVESTMENT SYSTEM has allowed us to enhance the returns of our portfolios over and above typical time interval methods.

THE CONSCIOUS MIND RARELY ALLOWS A PERSON TO SELL HIGH

REBALANCING allows an investor to leverage the statistical opportunities inherent to INVERSE CORRELATION. However, if the sell decision is left to human emotion, human behavior would cause us to hold onto the high performers. That is why we have trigger points embedded in our system that ensure we never allow a portfolio to become over weighted in a particular asset class. These trigger points allow us to leverage our managers’ sell disciplines without the interference of human emotion.

REBALANCING OCCURS  . . .

As needed.  At the right time.  At the right place.