Manager: Scott Daly
Model: NASDAQ 100 Long-Short Quant
The markets are irrational at best. The basic economic factors, unemployment remaining so high, oil at levels not seen before, foreclosures still rising, all would lead you to think that the market has one way to go, down. But yet it continues to go up.
This is exactly why a mechanical model based on active management utilizing risk reduction strategies is in my opinion such an important part of one’s portfolio. Regardless of real economic data, sometimes you just can’t buck the trend. A model has to be nimble enough to pick up on trends, to decipher overbought and oversold conditions, as well as to know when to stay on the sidelines.
Many investors ask how I feel about the current markets. My personal opinion of the markets is not taken into account when looking when and how much to invest. I solely trade on models that have proven over time to be the most effective way to participate in the markets with a reduced level of risk.
Scott Daly
