Our investment activities are generally defined by principles that are collectively known as Modern Portfolio Theory (MPT). We believe that:
Nobody can consistently predict the future - One of MPT’s primary tenets is the idea that nobody can consistently predict the future future cannot be predicted, and neither can stock prices. The best way to deal with the future is to plan and prepare ahead of time.
Diversification works - Another tenet of MPT is that a portfolio composed of several asset classes will experience fewer price movements and less volatility than more concentrated portfolios--even though the more diversified portfolio will inevitably include some losing positions at any given time.
Day trading is a losing strategy - We do not believe in “day trading” or short-term timing of the market with individual securities. While there may be nice winners, it ends up as a loser game.
Our overall portfolio construction process seeks to build highly diversified portfolios that are forward looking and profitable. We do use investments that have some hedge fund characteristics such as long/short funds, preferred stock, structured notes and bear market funds.
Our overall portfolio construction process seeks to build highly diversified portfolios that are both theoretically efficient and profitable. We like to believe that our portfolio construction process creates its own independent and positive “alpha.”
At Noyes Capital, we believe that flexible asset allocation and low transaction cost investments will generate superior results over time. This investment approach requires substantially more effort than the so-called "buy and hold" strategies used by many securities firms and advisors. We use our investment experience and discipline to strive to maximize and protect investment returns during all stages of the business cycle.
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