Investment Objective

InterGlobal Asset Management seeks to maximize returns while minimizing exposure to risk through the selection of portfolio assets whose strengths and weaknesses are aggregated and distributed in such a fashion that the overall portfolio's risk-reward characteristics are optimized.

Investment Strategy

Asset Selection. While InterGlobal Asset Management may choose whatever assets in whatever combination it feels best meets the Investment Objective, portfolio assets will be chosen in consideration of yield, market fluctuation, price flux, liquidity and other fundamental and tactical considerations that pertain to reward-to-variability analysis, all as determined by InterGlobal Asset Management's advanced computational techniques, which implement the Modern Portfolio Theory, as described below. Assets will not be selected “in a vacuum,” but will instead be considered on the basis of whether a particular asset can properly complement the other portfolio assets. In this way, InterGlobal Asset Management will endeavor to create a roster of portfolio assets that, when considered holistically, offers favorable returns while strategically balancing risk and minimizing volatility. Asset characteristics will be continually monitored and the asset composition will be regularly evaluated to ensure conformity to the investment methodology.

InterGlobal Asset Management's portfolio will generally consist of the following:

  • U.S. Exchange-Traded Equities – Individual equity selection will be based on statistical, fundamental and technical analysis, as well as other criteria including but not limited to open-interest, market capitalization, and ability to borrow.
  • Derivatives (Equity Option Writing and Purchases) – Option positions will consist primarily of put and covered call writing. Calendar and ratio spreads will be limited-risk only.
  • Commodity-Related ETFs and ETNs, and
  • Government Bonds – purchases will be limited to US Treasuries as well as domestic, high-grade municipal bonds.

InterGlobal Asset Management will seek to maintain diverse holdings across multiple asset classes in an effort to achieve low direct correlation with the S&P 500 index. InterGlobal Asset Management uses statistical, computational and other techniques to attempt to identify and incorporate zero or negatively correlated asset combinations.

Modern Portfolio Theory (“MPT”). MPT attempts to optimize a portfolio by maximizing return based on a given amount of risk, or conversely, minimize risk relative to a given amount of expected return. This is done through mathematical modeling of expected return, return variance, return volatility and other factors. InterGlobal Asset Management believes that exposure to any particular asset’s risk can be reduced by diversifying the assets within the portfolio, as long as a portfolio’s assets are not perfectly positively correlated. InterGlobal Asset Management seeks to identify the combination of portfolio assets that provides the greatest expected return given our risk profile.

Although the selection of portfolio assets is of central importance, InterGlobal Asset Management believes that properly optimizing the relative weights and distributions of those assets is the key to the use of MPT in the investment strategy. InterGlobal Asset Management will use its proprietary, specially engineered software to analyze assets within the prospective portfolio and then calculate an optimized allocation of those assets, which will allow InterGlobal Asset Management to attempt to shift the risk-reward ratio of InterGlobal Asset Management’s portfolio in favor of InterGlobal Asset Management by proportioning each asset according to the tenets of MPT. The software and underlying mathematical modeling have been specially tailored to attempt to achieve this result.

The most important aspect of InterGlobal Asset Management's investment strategy is how it uses the MPT. It is critical to understand that a portfolio might be properly balanced using MPT, but performance, returns and value will drop sharply when risk materializes, unless the portfolio has a risk profile which is resilient to unexpected events. InterGlobal Asset Management will attempt to select only those assets that, when balanced, enhance the overall risk profile in favor of InterGlobal Asset Management . In other words, not only will the assets be carefully chosen to complement one another and are balanced using MPT, but the assets will be further scrutinized to ensure that the particular combination and distribution offers a relatively favorable risk profile.