We see the biggest risks arising from deleveraging and unrecognized counter-party risk. The globalization of cash flows coupled with the great degree of leverage employed by algorithmic trading increases the probability of some Black Swan event.
Miami, FL (PRWEB) December 14, 2014
The Ivy Family Office Network hosted its December 2014 Family Office and Ultra High Net Worth Outlook Forum in Miami, FL on December 1st. Barry Diamond, Chief Investment Officer of The Harrison Group, Inc., led a panel discussion on “Portfolio Allocations and Investment Strategies”
Diamond comments “The stock market advance has been sustained by massive amounts of leverage and rate/currency arbitrage. Anything that disrupts that will have a negative impact on the markets. As the market advances more on positive change than absolute numbers, the concern is that many of the factors driving corporate earnings rates over the past five years are not sustainable.”
"We rely on two different types of technical analysis. The first quantifies the supply and demand characteristics of the overall markets and industry sectors to determine where to place emphasis. The resultant framework constructs our portfolio focusing the currently strongest areas of the markets, and determine entry and exit points using the second method of technical analysis. We manage risk at the individual position level by position sizing and stop-loss orders. This latter process often determines the overall construction more than the general market analysis. The process is dynamic and continuous.”
Moreover “During the past year, the largest changes were in the weighting of Biotech (large early, reduced and then increased) and Energy (reduced to zero except what is part of any index exposure) and an increase in broad market indices.
Finally Diamond comments “Our process is primarily tactical. We see the biggest risks arising from deleveraging and unrecognized counter-party risk. The globalization of cash flows coupled with the great degree of leverage employed by algorithmic trading increases the probability of some Black Swan event causing an unwinding of theme trades that can cascade. Very few of the underlying causes of the 2008 crisis have been addressed.”
Other speakers on the panel included Arun Kaul of AK Capital Management, Rodney McClain of MRM Capital Management , Peter Lowden of The Enrichment Group & John Dolan of Carey International Ltd.
Barry B. Diamond, Chief Investment Officer, is a nationally recognized authority on asset allocation and investment risk-management. His over forty years of practical experience and investment success provide individual investors with the level of investment guidance most sought by institutional investors. Mr. Diamond has helped establish investment policy and management of billions of dollars of institutional money, including service as Chairman of the Investment Committee of the University of Florida Foundation. He is Past-President of the Greater Miami Tax Institute, and a member of the Estate Planning Council of Greater Miami.
He earned his Bachelor of Electrical Engineering (BEE) from the University of Florida and Masters of Business Administration (MBA) from the University of California at Berkeley.
The Harrison Group, Inc. is a Registered Investment Adviser offering unique risk-managed investment management and advisory services to individual and institutional investors. The Harrison Group’s mission is to reduce clients’ concerns that their investment portfolios could be devastated by a Bear market, while positioning them for profit by focusing their capital in areas identified as the strongest in the current market.
IvyFON, is a leading peer to peer global family office network with several hundred family offices attending events around internationally every year. Some of the more than 2,500 past speakers include most of the top 10 largest asset allocating consultancies, pre-eminent alternative investment funds, leading institutional investors, best-in-class asset management professionals, family office subject matter experts and world-class family offices.
Forum sessions are multi-format and cross-disciplinary covering a range of family office centric topics.
IvyFON is one of the largest global family office networks with more than 3,000 forum attendees annually. The group includes New York City and Los Angeles multi-discipline deal networks including private equity, health care and real estate. More than 20,000 investment, family office and institutional investment professionals have attended forums globally.
For more information on The Harrison Group, Inc. contact Barry Diamond at PH 305-667-7635. For more information on the Ivy Family Office Network, contact us at 646-290-8114 or at ivyfon.com/contact.html.