We believe capital preservation and capital growth are equally important investment objectives. Investors can achieve long-term outperformance by limiting the downside risk during severe market downturns. To achieve our objectives, we have developed a three-step multi input adaptive investment process, which allows us to adjust portfolio risk exposure according to market environment. The steps include:
- Risk on/off switch through a composite indicator including economic, technical and risk indicators;
- Asset class/sector selection through relative momentum;
- Risk parity approach to portfolio construction.
![](https://www.julexcapital.com/wp-content/uploads/2018/06/adaptive-investment-process-1.png)
By dynamically managing portfolios through this investment process, we strive to achieve consistent returns and outperformance by actively participating in the bull markets while limiting risk exposure in the bear markets.