Enhancing Modern Portfolio Theory

By incorporating tactical strategies driven by evaluating real time price action with strategies driven by fundamental valuations and security selection, we seek to create a more broadly diversified portfolio. In our experience, tactical strategies have historically demonstrated less correlation to broader asset classes. Our quantitative process utilizes cash as a defensive hedge and can help Financial Advisors create a more customized portfolio more properly aligned to the efficient frontier. 
 
Braver’s Tactical investment strategies were each developed individually to seek more specific engineered risk return profiles. Each tactical strategy can be utilized as sleeves or tools within an overall well diversified portfolio to account for price disruptions that may occur that have nothing to do with traditional valuations or fundamental factors. 
 
Braver’s Fundamental strategies focus on a more traditional, bottoms-up research driven methodology. Through fundamental security selection and traditional research we utilize both macro views and bottom up security selection to implement these mandates.

The Importance of Avoiding Market Corrections and Negative Returns

Over the past 30 years, investment experts have promoted the idea that remaining invested over long periods of time yields the best results. In essence their argument is that missing the "10 best days" is sufficiently harmful to returns that it should be avoided at all cost. While there's truth to this explanation, we believe it's only one side of the story. We believe that combining traditional investment strategies with tactical solutions can provide a more efficient portfolio.

We believe that avoiding the “10 worst days” in the market is as important to investment success as capturing every bit of an upside move. Consistent compounding of positive returns is the key to building long term success. Chasing benchmarks is a fool's game.

At Braver Capital, we believe that the preservation of capital is an important investment foundation. We recognize that not losing money is at the core of successful investing. Many of our investment strategies center on the goal of risk control and avoiding major market corrections, while still seeking to capture a portion of market or asset class uptrends.

What’s made us successful over the past 20 years?  A Proactive Approach

Our Tactical strategies are constructed using our proprietary quantitative computer models. Our models and investment team employ a multi-factor approach and constantly analyze technical indicators, broad market and asset class trends, and momentum factors. Our models determine whether to be invested (‘risk-on’) or direct us to stay in money markets (‘risk-off’) when markets appear downward trending. At Braver Capital, we view money markets (cash) as a true investment as it often times is the best performing asset class. This tactical investment decision to own the underlying asset class or money market differentiates us from our competition. Our goal is for our clients to benefit from our tactical utilization of money markets to mitigate downside risk and enjoy a smoother ride, more consistent compounding, and reduced risk for their unit of return derived.

Avoid Emotions & Stay Disciplined

The goal for our quantitative investment process is to reduce volatility and deliver competitive absolute returns. Our investment team adheres strictly to the disciplines of our computer models – an approach that offers a systematic buy and sell process which seeks to avoid the pitfalls of human emotions. In fact, studies have shown how detrimental investor emotions can be in making kneejerk investment decisions in reaction to market headlines.

We understand that reducing down market exposure also provides less investor anxiety and leads to clearer long term decisions. Keeping investors from making poor emotional decisions (buying high and selling low) is extremely valuable to long term success… And you, and your clients, will sleep better at night knowing they have an active approach.

Past performance is no guarantee of future results. Investments are subject to risk and any of Braver Capital’s Investment strategies may lose money.


Be sure you put your feet in the right place, then stand firm.
— Abraham Lincoln