Like all practical sayings that endure the test of time, these simple proverbs have a lot of truths, even if not the whole truth. When these are wrapped into a body of financial theory supported by logic and a systematic set of principles, these elementary wisdoms are very powerful.

Investing is a process of making decisions today whose results will not be known until tomorrow, being wrong is inescapable, even for people who are very smart. The subject matter of asset management is about how best to manage our portfolio in the face of that disagreeable reality: a wrong forecast.

Monoceros Capital approaches the task of asset management in several ways; we can be a tactical manager that takes short-term, opportunistic views of a certain sector, company, or commodity or we can take a longer term view that fits the client’s risk and time horizon parameters. Yet another approach is for Monoceros to generate returns that are uncorrelated to the market itself, either through relative value, variance premium, mean-reverting processes, and alternative investments.

Most well-diversified portfolios will contain real estate, commodities (agriculture, precious metals, oil & gas, etc), domestic and foreign stocks, and finally bonds. Finding the right mix for the right time-frame is a challenge all investors face.