Studies show that individuals do not obtain the full potential of investment markets because they look to protect their principal after the market’s drop. Auour’s method of downside mitigation looks to be proactive to market disturbances by defending principal as markets start to get rough. Our experience from doing so in the past is that people are more able to ride out bad markets and take advantage of opportunities as they present themselves.
Most investors focus on trying to predict the next big thing which causes them not to see a growing risk that can cause substantial losses in wealth. Auour turns the process on its head and instead looks to understand the risk within the market and to adjust portfolio holdings to fit the current environment. The basic premise is that a wider perspective can allow for a better long-term return.
Too often, investors think that a change needs to be made just to look active. They neglect the fact that a decision to not do anything is an active decision. Auour aims to monitor market risk environments and make changes only when necessary. This reduces the amount and costs of trading and its tax impact on realized capital gains.
Our proprietary algorithm is built on fundamental principles leveraging quantitative research with a focus on risk mitigation while capturing the market’s potential.
