We designed our public dual momentum model, GEM, to be simple and easy to use by do-it-yourself investors. Our book featuring GEM introduced dual momentum to the world. GEM was designed to help protect smaller investors from horrendous drawdowns while giving them a chance to earn better than market returns over the long run.
Dual momentum works best when it is combined with other investment criteria. There is a synergistic effect from doing this that most investors are unaware of.
Our aim is to achieve high and consistent returns using all available investment tools. These models are the culmination of a lifetime of investment research and experience.
Our proprietary models are highly adaptive to market conditions and often serve as the basis for core portfolios. They have their foundation in academic research supported by out-of-sample and real-time validation.
Most investment approaches do not spend enough time on portfolio construction. Thoughtful portfolio structuring is an important part of optimal investing. We integrate that into all our proprietary models.
We license our proprietary model signals to substantial private investors and select investment advisors. Our models work best when they are used together due to their differences and modest correlations.
Here are our current proprietary models:
Dual Momentum Fixed Income (DMFI)
Dual momentum works as well with fixed income as it does with equities. DMFI is our simplest and oldest proprietary model. It applies dual momentum to the short and intermediate segments of the bond market. Since 1970, DMFI has had equity-like returns with the volatility of short-term bonds.
Besides its value as a stand-alone investment, DMFI is an attractive substitute for passive bonds in a stock-bond portfolio. Because of its low volatility and modest correlation to our more aggressive models, DMFI has considerable value as a portfolio diversifier.
Advanced Global Equities Momentum (A-GEM)
A-GEM focuses on various areas of the stock market but includes bonds and other assets when market conditions warrant it. A-GEM adds market structure and intermarket relationships to dual momentum in determining trends. A-GEM uses daily and weekly data instead of just monthly data.
NASDAQ Breadth and Trend (QBAT)
QBAT applies breadth, trend, and mean reversion to the ProShares Ultra QQQ ETF (QLD). When not invested in QLD, QBAT holds the same positions as A-GEM. QBAT uses only daily data. It is our most adaptive and most complete model.
Performance
Here is the performance of our Dual Momentum Fixed Income (DMFI) model compared to Aggregate Bonds, 3-10 Year Treasury Bonds, and the S&P 500 index.