Asset Management

Blue Marble Research (BMR) manages portfolios for qualified clients. BMR also manages a private fund for accredited investors only.

Utilizing its research capabilities, BMR builds and maintains customized portfolios based upon a careful analysis of a client’s objectives and risk profile.

BMR managed portfolios are primarily constructed with Exchange Traded Funds, with the goal of creating an effective portfolio designed achieve an investor’s goals.



Asset Management Services

The careful administration and management of one's assets is central to successful wealth management. The need for investors to create and maintain an effective portfolio (one that is designed to achieve a client's goals and objectives with the appropriate consideration given to risk tolerance, obligations, and constraints) has always been paramount. However, for many the investing focus tends to be centered in the “hot idea” with little regard for the all-important principle of a well-diversified portfolio.

Through sound portfolio management principles, Blue Marble Research creates and maintains customized, well-diversified portfolios for qualified clients. This is accomplished by applying the analytical methodologies described in the Methodology portion of this website to a global macro, long/short portfolio approach. The unique blend of GEM, thematic investing, technical analysis, and diversification with a tilt provides client portfolios with the best opportunity to consistently generate alpha (excess risk adjusted returns over the market).

A Few Portfolio Management Factors to Consider

On the assumption that we are talking about managing a portfolio (as opposed to an occasional trade or an unorganized, undisciplined approach to managing one's money), there are four primary ways an investor can be successful in the stock market. They are:

  1. Arbitrage (typically by one asset, sell another, make money from the spread)
  2. Trading (primarily information based)
  3. Diversification with a Tilt (also known as sector and style allocation)
  4. Concentrated portfolio (think Warren Buffett, only not just value investing)

The first two do not work for most investors. Arbitrage requires a complex system to exploit pricing anomalies, while trading, specifically very active trading (primarily day trading), requires both an information pipeline and the trading speed to exploit the opportunities. That leaves the last two, Diversification with a Tilt and Concentrated Portfolio, which can and do work for investors PROVIDED they understand a few key elements about them.

Diversification with a Tilt is the predominant method employed at BMR. But for it to work, an investor must accept the following premise - over longer periods of time, stocks have an inherently upward bias. The data supports this, as does understanding the basics of economics (the social science of people). The portfolio strategy goal is straightforward - outperform the market in both bull and bear markets by tilting the portfolio mix in favor of one or more of the ten economic sectors of the global economy that look attractive and away from those sectors that are determined to be less desirable. In the process, portfolio positions in both individual sectors and styles are expanded and contracted as needed as well as the overall asset allocation decision. (Note: We are not talking about trading but active portfolio management.)

The Concentrated Portfolio approach also works as it tilts the portfolio like a diversified portfolio with a tilt approach does, however, money is concentrated in fewer positions with a secondary regard for a well-diversified sector and style mix (meaning a heavy exposure in one economic sector, say Energy, may be the result). Moreover, the Concentrated Portfolio approach tends to have more of a buy and hold feel to it as longer-term mega trends and themes form much of the basis for the individual investments made (e.g. infrastructure, aging populations in developed economies, and rising middle class in emerging economies).

For most BMR clients, a Hybrid approach is taken whereby individual client portfolios follow the much longer-term Concentrated Portfolio approach while also having money invested in a fund managed by BMR (accredited investors only) employing the more actively managed Diversification with a Tilt approach.


To learn more about our asset management services and for a free, confidential consultation, please contact us.


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