PROOF OF COURSE (2.54 GB):

Can You Outperform the Average Hedge Fund?

It might sound ambitious, but did you know that the average yearly returns of hedge funds are just 4.5% to 5% over the long term? While recent years may show higher returns due to a booming stock market, factoring in market crashes brings the average back down to around 5%.

This statistic comes from tracking 600 to 800 major hedge funds, each managing at least $100 million in customer funds. Despite this lackluster performance, hedge funds continue to charge hefty management fees, regardless of their results.

Discover the Holy Grail of Portfolio Investing with Ray Dalio

Despite the average performance, some hedge funds excel. Ray Dalio, founder of Bridgewater Associates, one of the world’s largest hedge funds managing over $125 billion as of 2018, claims to have found the Holy Grail of investing. As a billionaire investor, his insights are invaluable.

In this short 4-minute video, Ray Dalio explains the concept of the Holy Grail in investing. While he mentions terms like standard deviation, correlation, alpha, and information ratio, don’t worry—by the end of our course, you’ll fully understand these financial terms.

The key takeaways from his concept are:

• Diversity in Portfolio Strategies: Trade a variety of uncorrelated portfolios.
• Understanding Correlations: Measure how these strategies relate to each other.

When one strategy experiences a loss, others may remain stable or gain, smoothing out overall returns. In our course, you’ll learn how to implement both of these crucial aspects.

How Much Financial Pain Can You Tolerate?

Back in 2008 and 2009, during the financial crisis, I worked for a large IT consulting firm and had significant funds in a 401(k) retirement account. Limited to selecting from pre-made portfolios, I chose those with seemingly strong performance and low historical drawdowns.

However, during the crisis, my entire 401(k) plummeted by around 45%. The promised diversification failed to protect against such a massive drawdown. It was a painful experience, yet fund managers still collected their management fees.

Would You Prefer Wild Volatility or Steady Portfolio Returns?

Consider this comparison:

• Red Line: Represents the S&P 500 returns, an index of the 500 largest U.S. companies.
• Blue Line: Represents returns from one of the sample portfolios we’ll explore in the course.

Do you prefer wild market swings or steady returns with low drawdowns?

During the 2000-2002 DotCom crash, the S&P 500 was down 45%, while our sample portfolio experienced a drawdown of only 5%. In the 2008-2009 financial crisis, the market dropped 50%, yet the portfolio was down just 14.5%.

Would you accept a slight decrease in annual return—from 9.56% to 8%—if it meant reducing drawdowns from 50% to 15%? If so, that’s exactly what you’ll learn in our course. Moreover, notice the consistency of the blue line’s returns compared to the red line’s volatility over the same period.

The Power of Uncorrelated Portfolio Strategies

As Ray Dalio emphasized, the goal isn’t to find one perfect portfolio but to combine multiple uncorrelated portfolios. By doing so, the overall returns become smoother, and drawdowns are minimized.

Introducing a Variety of Portfolio Investing Strategies

In this course, we’ll cover a dozen ready-made portfolios you can start using immediately. For example, our core-satellite portfolio offers:

• Yearly Compounded Return: 11.91%
• Max Drawdown: 13.63%

Compared to the stock market’s:

• Yearly Compounded Return: 8.78%
• Max Drawdown: 51%

The Ideal Setup for Smooth and Consistent Portfolio Returns

Trading multiple uncorrelated portfolios together leads to smoother overall returns. Below are cumulative returns of nine different portfolios you’ll learn about in the course. No subscriptions or extra purchases are needed—everything is included.

The cyan line represents the industry benchmark of investing 60% in stocks and 40% in bonds. Surprisingly, most hedge funds struggle to outperform this simple allocation. However, the portfolios we’ll teach you have historically surpassed this benchmark, especially during market downturns.

During the 2008/2009 crash, while the stock market was down -50% and the benchmark down -32%, most of our nine portfolios had drawdowns of around -10%, with the more aggressive ones around -20%.

The Combined Power of Multiple Portfolios

Investing equally in all nine portfolios results in an impressive equity curve:

Even during significant market crashes, this combined portfolio only experienced a -12% drawdown. Every $1 invested at the start of 2006 grew to over $4 by the start of 2019—a 400% growth in 13 years with minimal drawdowns.

Take a Deep Dive into Portfolio Investing Strategies

While our course offers around 12 hours of video content (with more being added), we understand you might be curious about the value it provides.

Preview an Entire Module for Free

To address any concerns, we’re offering full access to one of the early modules:

How Data Can Trick You in Portfolio Investing

This isn’t a brief teaser—it’s 1 hour and 18 minutes of in-depth content.

This module explores how data can be misleading in performance analysis, ensuring you’re well-equipped to interpret financial information accurately.

What’s Holding You Back from Portfolio Investing Success?

If you’ve explored finance, you might have felt overwhelmed by terms like variance, standard deviation, beta, correlation, Sharpe ratio, and more. Complex explanations often deter individuals from confidently managing their own investments, leading them to rely on mutual funds or hedge funds.

It’s Time to Transform Your Portfolio Investing Approach

Our course simplifies these technical terms, explaining them in an easy-to-understand manner. We focus on visual explanations and core concepts without unnecessary complexities. You’ll gain practical knowledge applicable to real-world portfolios.

We’ll build spreadsheets together using Google Sheets, ensuring you grasp each concept thoroughly. Plus, we’ll utilize powerful online tools to automate portfolio analysis—all without any coding required.

Access to Diverse Portfolio Investing Strategies

We’ll cover around a dozen pre-made portfolios ready for you to implement. As our community grows, additional portfolios and strategies will be shared, fostering collective growth and success.

Comprehensive Course Contents on Portfolio Investing

Introduction to Portfolio Investing

• Welcome to the Course
• Strategic vs. Tactical Asset Allocation
• Introduction to Bonds
• Understanding Asset Classes
• Exploring Hedge Funds
• How Data Can Trick You

Understanding Returns in Portfolio Investing

• Getting Historical Data
• Linear vs. Log Scale
• Arithmetic and Log Price Returns
• Cumulative Returns Explained
• Converting Between Return Types
• Arithmetic vs. Geometric Mean
• Building a Wealth Index
• Creating Performance Charts

Measuring Risk in Portfolio Investing

• Variance and Standard Deviation
• The Portfolio Effect
• Sharpe, Sortino, Calmar, and Martin Ratios
• Decoding Alpha and Beta
• Correlation and R-Squared Explained
• Treynor and Information Ratios
• Value at Risk and Expected Shortfall
• Introduction to Factor Models

Modern Portfolio Theory and Beyond

• Capital Asset Pricing Model (CAPM)
• Fama-French Three-Factor Model
• Building Permanent Portfolios
• Using Moving Average Filters
• Exploring the Efficient Frontier
• Minimum Variance and Mean-Variance Portfolios
• Portfolio Rebalancing Techniques
• Analyzing Return vs. Risk
• Capital Allocation Line and Margin Effects
• Applying the Kelly Criterion
• Inverse Variance and Risk Parity Portfolios

Exploring Dual Momentum and Other Strategies

• Review of Six Dual Momentum Portfolios
• Adaptive Allocation Portfolios
• Core-Satellite Portfolio Strategies

Spreadsheets and Automation in Portfolio Investing

We’ll construct spreadsheets together to reinforce concepts, using free Google Sheets tools.

Stock Analysis Spreadsheet

• Import Historical Data
• Calculate Returns (Arithmetic and Log)
• Create Performance Graphs
• Analyze and Graph Drawdowns
• Calculate Performance and Risk Statistics
• Monthly Seasonal Performance Analysis
• Visualize Return Frequencies and Distributions

(Don’t worry if these terms seem complex—we’ll break them down for you.)

Conversion and Comparison Tools

• Clean and Prepare Time Series Data
• Compare Portfolio Returns Side by Side
• Automate Processes with Google Apps Script

(Source code provided for those interested in diving deeper.)

Are You an Options Butterfly Trader?

If you trade broken-wing or standard options butterflies, you might notice that the right wing of the put fly often neutralizes the left wing’s credit, leaving substantial “cash” in your account. Even when fully utilizing your account for options trading, this unused cash can be invested in conservative ETF portfolios.

Enhance Your Returns with Portfolio Investing

Suppose your options trading yields a 20% annual return. By applying the knowledge from this course, you could invest your unused cash in conservative portfolios aiming for an additional 6% to 10% annual return. These portfolios have historically shown drawdowns of just 10% over 50 years.

An extra 6% return on top of your existing 20% is significant, achieved by efficiently using your available cash.

Let’s Get Started with Portfolio Investing!

In just a few hours, you’ll grasp financial concepts that previously seemed daunting. You’ll access ready-made portfolios and join a private community of hundreds of traders collaborating for mutual growth.

Take Control of Your Financial Future

Don’t let complex financial jargon hold you back. Our course empowers you to achieve steady and consistent returns with low drawdowns.

Enroll Now and Transform Your Portfolio Investing Strategy

Join us today and embark on a journey toward financial success with portfolio investing.