Investment Philosophy

Here at Glenorchy Capital we have two different philosophies to managing our funds.

1. Wealth Management
2. Wealth Creation

Wealth Management

Taking action to maintain the real purchasing power of our capital.

Just left in the bank or cash management accounts, real wealth slowly declines thanks to inflation.

We manage wealth by seeking to keep ahead of the inflation “curve”.

Capital is allocated to different asset classes (equities, currencies, commodities, fixed income, and real estate)  with the aim of appreciating at a rate greater than that of inflation.

We see the world as one and allocate capital between asset classes from a USD perspective.

Wealth Creation

Growing the real purchasing power of our capital by accumulating more. We use one simple principal for this: Buy Low, Sell High.

Easy to say, but much harder to do in practice.

We won’t go into all of our techniques; we have various proprietary algorithms and techniques; however we will share one simple technique here.

We allocate a portion of our funds for extreme events then take a position based upon mean reversion. Appreciating both the risks involved and historical price trends is crucial for this technique, as well as huge amounts of patience. Mean reversion can take months or years to occur. Returns have ranged from loss of funds to 500%+.

Every bust and boom business cycle presents many such opportunities.

Your investment philosophy

We feel that how you allocate your funds should depend upon your stage in life. Those earlier in their career should place a higher weighting towards Wealth Creation (70%+), whilst those approaching retirement should be placing a similar amount or greater towards Wealth Management.

We strongly recommend that you separate your different strategies into different trading accounts.

This prevents one bad decision devastating your account. In all investment strategies, losses can and do occur, most often the person we need protecting from most is ourselves.

We have separate trading accounts with separate brokers for this purpose.