We’ve architected what we believe will end up managing the majority of the world’s wealth.
INTRODUCING THE MODERN ALL WEATHER PARETO PORTFOLIO FROM DECAPLY
Why Modern?
Modern, because it incorporates forward-thinking strategies like black swan hedging through far out-of-the-money calls and puts, and inflation hedging via moderate exposure to cryptocurrencies.Why All Weather?
The portfolio is designed to do well in any environemnt without being market neutral.
Why Pareto?
Historical performance means little to nothing. Why? Because good historical performance is actually easy to find—there's always some set of parameters that would have worked beautifully in the past. The real question is: why did those parameters work, and is there a reason to believe they will continue to work in the future?Statisticians call this phenomenon overfitting, and it’s the bane of most quantitative analysts. Decaply has developed a heuristic to combat this issue, called Nested Paretos.
Inspired by Pareto’s Principle, Nested Paretos aim to prevent overfitting by establishing a simple, robust heuristic that creates an architecture more likely to perform consistently in the future.