Investment Strategies

Liberty Cove’s trueFactor absolute return strategies are grounded in quantitative, systematic approaches, and founded on economic theory. We’ve developed deep insights to portfolio risk and how it ultimately drives returns. We believe that risk factors, not asset classes, are the true drivers of portfolio risk, return, and correlation. Therefore, a central element of our absolute return philosophy is the modeling of risk dynamics to inform our tactical allocation decisions. 

 

Global Macro

The Liberty Cove Global Macro strategy is a risk-managed, go-anywhere, all-weather strategy that seeks positive absolute returns through tactical long and short exposures to equities, treasuries, credit, commodities, currencies, and volatility-as-an-asset-class. The strategy can be customized to target different volatility levels: 5% to 8%, 8% to 12%, and 12% to 15%.

 

Long-Short Commodities

Long-Short Commodities is a quantitative strategy that seeks to earn risk premiums from producers and consumers of commodities, while maintaining neutral exposure to the overall commodities market. The strategy selects concentrated tactical exposures from a broad, liquid universe comprising grains, softs, livestock, metals, and energy.  Positions are weighted based on risk-adjusted expected return and subject to sector constraints. The strategy may be managed either to maintain 100% gross notional exposure and variable portfolio volatility or to target a fixed portfolio volatility:

  • Conservative: 3-5%
  • Moderate: 8-12%
  • Aggressive: 12-15%

 

Risk Parity

The Liberty Cove Dynamic Absolute Return investment strategy is a tactical asset allocation strategy that seeks to earn dynamically managed risk premiums from equities, duration, and credit by utilizing Liberty Cove’s predictive risk models. The Strategy systematically adjusts exposures to maintain clients’ portfolio volatility targets, e.g., 5%, 10%, or 15%.

 

trueMLP

In addition to the firm's Absolute Return strategies, the trueMLP approach strives to provide investors with exposure to Master Limited Partnerships without the burdens often associated with MLP investing.