STAR™ SPECTRUM utilizes a Multi- Asset Strategy Investment Process in order to determine the selection of optimal securities for each strategy. TheSTAR™ SPECTRUM approach focuses on the view that diversification and allocation based on risk must be combined with traditional asset class diversification to achieve a more efficient portfolio. We seek to achieve our objectives by investing in segments of the global asset universe primarily via a combination of ETFs and mutual funds which exhibit attractive risk and return characteristics, consistent performance, adherence to style discipline, and with prudent investment philosophies.
The firm also employs options based strategies designed to structure a return based upon volatility that can be used for downside risk protection and generate income in the form of option premium. Option strategies can also be used to manage the risk associated with large concentrated positions.
The Base Premise:
- Investors should budget and “spend” risk, not assets/dollars.
- Combining diversified risk allocated portfolios with intelligent selection building materials and superior operation of the portfolio is the art and science of perfecting the portfolio.
Risk: The Conventional Perception
- Risk metrics measure volatility
- Optimized for risk-adjusted returns
- Over-exposed to equity markets
- Uses traditional asset classes
- Modern Portfolio Theory (MPT) and its
resulting mean-variance optimized portfolios may not result in well-diversified portfolios – diversification is superficial.