The OBI strategy uses Quantamental Analysis (QA) which applies a mixture of fundamental and quantitative analysis of data from many sources to produce an objective assessment of market data. We use these tools to analyse the global economic situation alongside individual cycle development and the extent to which we agree with the market’s valuation. In doing so, we are able to focus on delivering the ‘Outcome’ (i.e. the agreed annualised return target after fees and charges) for the client, keeping volatility within agreed limits. Sounds complex? It is, but we’ve been following OBI principles for many years to good effect. Our investment decisions are driven by data and sound judgement.
While we do follow Modern Portfolio Theory (MPT), OBI challenges the long-established assumption that you cannot make strategically timed asset allocation decisions, and that all investors are better off investing and staying invested in a fixed portfolio of assets over the long term. We believe that by cyclically adjusting our asset allocation based on the position in the market cycle, we can produce returns in line with the outcome expectation at a lower level of volatility than the market. In doing so, we do not try to beat the market, instead we remain focused on delivering the portfolio expected outcome within the proscribed parameters of risk.