How Strong is Your Asset Protection Plan?

The rise in litigation filed by plaintiffs and their lawyers has created a threat to anyone with a positive net worth.

Forbes wrote an article last October, detailing 6 Asset Protection Strategies To Shield Your Wealth, of which a few strategies will be listed here amongst others.

Asset protection consists of a range of strategies that can reduce your risk and offer peace of mind. While asset protection can be very inexpensive, it is often skipped by many in favor of luck, hope, and friendship.

Here are some best practices / strategies we employ for our own asset protection needs: [Read more...]

A Closer Look at the Adaws “Hedge Fund”

A hedge fund can be invested in virtually anything, short and long-term alike.

If you've ever heard the term hedge your bets, you should now have a slightly better idea of what a hedge fund does.

At Adaws, we offset portfolio risk with a different kind of risk, and one of the ways we monitor this is via a daily stress test report. The report simulates scenarios of between -30% to +30% changes in the underlying price of each of the portfolio's positions.
[Read more...]

Winning the Loser’s Game

When everyone's jumping into something / anything, it's probably a really good time to move in the other direction.

I read an interesting article this morning at the Wealth of Common Sense Blog, regarding Charles Ellis. In it, Ellis explains how the investment world is a lot like the sport of tennis.

To quote:

The best players in the world hit enough solid shots until their opponent finally makes a mistake (the winner's game). On the other hand, amateur tennis players tend to lose points because they make basic mistakes and unforced errors (the loser's game).

Simply cutting down on unforced errors and reducing mistakes can help you become a better investor.

[Read more...]

Commingled Fund vs SMA Type

Over at The Hedge Fund Law Blog, we found a great little article that clearly explains why Adaws Eagle Fund is structured as a Commingled Fund (referred to as the Hedge Fund Model in the blog) over an SMA (Separately Managed Account).

We highly recommend that you read it. Doing so will allow you to better understand the pass-on value we bring to clients using a Commingled Fund structure. [Read more...]

The Calm Before the Storm – VIX Lows

If you're in the stock market in any way, shape or form (unless you’re short), you should be concerned. Now is not the time to hold onto your positions. This applies if you hold stocks, options, mutual funds, etc. Everything a traditional buyer would own.

I'm sure you've heard from someone somewhere, perhaps CNN or MSNBC, that the volatility in the stock market is at its lowest in years.

And they would be right.
You should be scared.

[Read more...]

No More Chasing Alpha

absolute returnsA recent study by BNY Mellon entitled "New Frontiers of Risk: Revisiting the 360O Manager", illustrates a key finding that investors are no longer placing emphasis on generating alpha, but instead investing with absolute return funds.

And it makes a lot of sense too.

Generating alpha looks at outperforming a market benchmark over a given period of time. But what if the market benchmark drops 5%, and the fund drops only 2%? Should investors be complacent and satisfied with their return (or loss in this case)? One would hope not. [Read more...]

The World of Hedge Funds

Thanks to our friends at Pertrac, this is an excellent infographic for both new and seasoned investors to better understand the hedge fund industry.

Click the image to enlarge! [Read more...]