Maintain long-term equity positions in mega-caps and major indices with strong fundamentals, value, and growth prospects
Take advantage of short-term profit opportunities through active long-short macro strategies to achieve alpha beyond the base long-term equities portfolio
Adjust potfolio positioning based on continuous assessment of the market cycle to protect portfolio from market collapses
LDH Group's fundamental investment philosophy is rooted in the classic value investment principles presented by Benjamin Graham and pioneered by Warren Buffett.
However, we don't obsess with finding extreme value, but focus on finding great companies with strong fundamentals and growth prospects at great prices.
We also believe strongly in the strength of the U.S. economy and its future. Given this view, one of our all-time favorite asset is the S&P 500 Index, which is essentially a basket of the 500 best U.S. companies at any particular time.
We believe in staying invested in strong stocks and indices like the S&P 500 over the long-term, with occasional adjustments to portfolio positioning in response to shifts in the stages of market cycle.
Some of what we consider in making a stock investment decision:
Since long-term investment in equities may not provide sufficient investment return in the short term, LDH Group also engages in active long-short trading of various global macro assets to take advantage of market volatility arising from global occurrences and generate immediate investment return.
We do not set a firm time frame for these short-term long-short investments, but a typical investment usually ranges from as little as a single day to several months.
We seek aggressive returns by taking use of leverage in these short-term alpha generating strategies, while strenuously analyzing and monitoring risk through real-time exposure calculation model.
While long-only investments in stocks can generate good returns only in risk-on market environments, long-short investments in the global macro market provide almost limitless potential for profits in any market environment, whether risk-on or risk-off. In other words, there are profit opportunities 365 days a year.
Our flexibility to take either long or short positions in any asset and the availability of numerous asset classes in the macro market - either risk or safe-haven - also provide wonderful means of indirect hedging.
Short USDCNH futures
Although the stock market tends to rise in the long term, protecting portfolio from occasional market collapses is paramount to long-term investment success.
With our strong understanding and sense of the market cycle, we continuously assess where in the current cycle we may be to adjust portfolio positioning accordingly.
Our goal is to protect our portfolio from occasional market collapses by reducing market exposure in times of extreme market euphoria and to aggressively load up great assets at bargains in times of extreme market panic.
For a detailed overview of how LDH Group utilizes market cycles in investing, refer to the following article: Importance of Market Cycles in Investing by Peter D. Lee, CFA | Medium
LDH Group Inc.
Copyright © 2022 LDH Group Inc.
All Rights Reserved.