Poor Performance :
Generally, fund managers rely on market anomalies, or sector themed bets to yield alpha. These principles are not consistent and produce higher risk for the long-term, resulting in lower performance over time and a lack of accountability towards increased performance.
Solution: Better Performance
With Globus “Derivative Bond Contracts” we rely on premium to generate Alpha. By leveraging proprietary technology, the system mines the markets daily, processing over one billion data points. This generates trade opportunities on “what” equity to buy/sell and “when” to buy/sell using advanced proprietary data mining algorithms that have been optimized over the past 20 years. These proprietary algorithms have consistently generated on average 95% win-rates. The monthly alpha generally beats overall Hedge Fund Annual Average Performance* The benchmark of 12.5% annual return to investors provides “Income for Life” source, that cannot be found in comparable products.
Unfavorable Management Fees :
The standard 2/20 fee structure presents a bias in the managers favor. Managers get paid regardless of performance and have an incentive structure when there is increased performance. The problem is that when performance is poor, fees are unsustainable and does not generate a favorable return for the investor.
Solution: Performance-only Fees
Globus Wealth has an investment philosophy “If we don’t make you money we do not deserve yours.” With Globus Wealth , fees are 100% performance based. Benchmarks are set at 12.5% annual returns to contract beneficiaries. Only once this benchmark is reached, does the Globus Wealth collect a performance-based share above these benchmarks as incentive.
Unsustainable Strategies :
Generally, fund managers execute strategies that are not sustainable. If that strategy is not designed and leveraged by advanced proprietary technology, it tends to be discovered rather quickly, often replicated, and its value declines due to the lack of a competitive advantage, especially under changing market conditions.
Solution: Proprietary Strategy & Black Box
Globus’s accelerated smooth return strategy (the double up) has been used and perfected for over 20-years and developed by a NASA mathematician, financial technology programmer, and author of 6 books on investing. The system consists of three advanced algorithms that mine stock data to determine the best trade opportunities daily.
One of the proprietary algorithms is used to calculate the best premium on a risk/reward basis that can be generated, in the shortest time possible, and the probability of that success, thus consistently producing Alpha with a 95% win-rate.
Subjective Risk Exposure :
Generally, investors want to limit long-term risk and the increase in risk exposure in funds are no longer attractive. Risk factors are generally decisions made by humans (risk or fund managers) on a subjective principle. The risk is a calculation that defines the performance of Alpha for most funds and the more risk, the less Alpha.
Solution: Algorithmic Risk Mitigation
The Globus Wealth has rule-based risk mitigation principles built into the algorithm. First, the algorithms filter equities with the best fundamentals that can survive a major correction, reducing risk. Secondly, the premiums received reduce risk by generating a capital gain. Third, the exposure time is short, which reduces risk. The average hold time of an equity in Globus’ strategy is a month or less, thus reducing risk and accelerating smooth gains for contract beneficiaries.
Lack of Capital Protection :
Generally, funds do not provide capital protection. Investors either buy into a strategy with low risk that will yield low alpha or a strategy with greater capital risk for greater alpha. The problem remains that you are investing into a fund product that may be speculative. Those that invest in crypto or alt coins my not be investing in any underlying value whatsoever.
Solution: Capital Protection
With the Globus Wealth , the initial capital (DBC1) has a low threshold of risk as trade positions are only entered into equities that could survive a major market correction (bear cash) and still produce premium until the stock recovers (time). The algorithm also dynamically moves to inverse equities as the market conditions, mathematics, and technology indicate necessary. The initial investment is further supported by premium when necessary. The premium can be generated on equities regardless of the market conditions. Time and patience is the only factor, with a reserve fund in place in case of early redemptions or a market correction up to 50%.
Generally, when you have someone handle your investments you give up control. Many new technologies and funds are based on nothing more than air and speculation. There are no physical assets only ideas and interest from other investors. Many investors stick with the traditional route that only gives medicore returns at best.
Solution: Asset Backed Bonds
Asset Backed Bonds are the only way to provide real value to any deravitive product, utility without value does not work. Globus Wealth utilizes a strategy-technology first approach to hold “real” assets. These assets also have underlying value with real reserve in their bank accounts to even survive a 50% market correction. Investing in the right equities with real assets to back them up assures a sound investment that will yield “Income For Life”.
Lack of Transparency :
Generally, fund managers take a “blind-trust” approach to investing your money. Unfortunately, this trust has been frequently violated due to lack of transparency.
Solution: Full Transparency
Globus Wealth and through Globus Deravitive Bond Contracts, utilize the “BLOCKCHAIN” technology platform to establish “visible-trust” by publishing irrefutable data with complete integrity. Detailed backoffice reports show not only performance and each trade completed, but also trade positions directly from the broker of record.
* average hedge fund statistics *
For More Information Contact: 1-888-999-8705 or Info@globuswealth.com.