Alternative Investment Strategies
Confluence will provide a wide range of investment advisory and portfolio management services focused on the alternative investment classes which the Confluence team believes have the potential to achieve excess risk-adjusted returns. In order to create top-performing investment portfolios, the Confluence team utilizes a disciplined investment process which takes advantage of its fundamental research and macroeconomic trend research.
The Global Macro Allocation Portfolio seeks to take advantage of major macro economic trends in four primary markets: equities, debt, commodities and currencies. The objective is to maximize total return by aggressively investing in these market categories using Confluence's evaluation of macroeconomic trends.
The portfolio is based on a short/intermediate macro economic outlook for the four primary market areas based on fundamental and technical analysis. The portfolio may invest in Exchange-Traded Funds (ETFs), tradable mutual funds, closed-end funds and in limited cases, individual securities. The portfolio is expected to result in a high level of turnover and may at times be concentrated. The portfolio is suitable for clients seeking an aggressive approach to generating capital appreciation.
The Global Hard Assets Portfolio is focused on investments in hard assets which we define as tangible commodities, such as a gold bar, a barrel of oil or a ton of coal. The portfolio is comprised primarily of common stocks of companies in the hard asset sector which are directly responsible for mining, extracting or producing the hard assets. In addition, the portfolio will typically hold various hard asset ETFs or ETNs, thus giving the portfolio exposure to actual commodities. The portfolio is typically comprised of 45-55 holdings and is expected to result in low to moderate turnover. The Global Hard Assets portfolio is suitable for clients whose primary objective is capital appreciation.