Why A Market-Neutral Approach Works When Valuations Are High

markets valuationsIt’s often said that the global economic recovery is muddling along — that is, moving in the right direction, but at a pretty slow pace even though emergency levels of monetary stimulus are still in place.

James Hodgins, chief investment officer of Toronto-based CHS Asset Management, thinks that’s kind of crazy. “There is no emergency right now,” he said, explaining that this environment is one reason why his firm launched a market-neutral strategy late in 2008.

The portfolio manager runs the Curvature Market Neutral Fund for Arrow Capital Management, which is run in sync with the Curvature Fund LP for institutional clients.  Read More…

This article has 9 Comments

  1. Khalid Whatley

    I have a problem with the neutral approach to investing. You miss opportunities. They've been strategizing the markets would be stagnant since 2008. If i had not invested big just after 2008 i wouldn't be up 250%. So i think they are being too scared to jump in the shallow end (let alone the deep end).

  2. Mattias H.

    In other words CHS runs a bot to manage their holdings. Don't they all? 🙁

  3. Terrance Rinehart

    Investing in tech stocks is always good medicine for market uneasiness.

  4. Gerard E.

    Hey i have some of the stock picks in this article 🙂

  5. Zeb Stevens

    Quantitative easing only affects the US and the European Union. Not so much us. Before any of you say that Canada is affected and linked to the performance of other countries i am already aware of that.

  6. Kevin Bristol

    Does this mean the Canadian economy is going to do a switcharoo?

  7. Khalid C

    Would FX (foreign exchange) trading be worth learning?

  8. Irvin A.

    Yup! This is always important to know. When valuations are high you should be cautious. We've seen this over and over again for decades. Remember the internet bubble?

  9. Denny L.

    And this is why i keep most of my money in my bank account. Too complicated and random this market thing.

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