Once again, in 2011 the Hypatia methodology has beaten the ASX 200 Accumulation Index by a nice margin. Of note, it is important to remember that the methodology does NOT use any leverage. This is the result of a robust and disciplined approach which allows us to avoid most of the volatility of the market. In the long run, less volatility means better long term return.
Recently, the market environment has turned positive. We are now 10% equities, 90% in cash, looking to increase our holdings when opportunities appear. We never try to second guessing the market and never rely on forecasts. Our approach is at the juncture of fundamental and technical analysis.