Once, it seemed the art of investing was all about picking just the right stock at just the right time – and then riding it all the way to the top. Investing was a horse race, and gambling on the result was not for the faint-hearted. But all this has changed in the past decade with the explosion in mutual funds.
Today, sophisticated institutional investors agree that stock selection and market timing are actually relatively minor factors in the overall performance of an investment portfolio. Surprisingly perhaps, what is far more important is optimal ‘asset allocation’ within a diversified portfolio of different classes of investment (such as cash, bonds, or hard assets; and domestic, international, or emerging market equities), and when to use hedging techniques or even apply derivative instruments. Correctly applied, asset allocation aims to deliver the desired investment return at a significantly reduced investment risk.
Since 2004 INTAC has employed an investment strategy that is concentrated and overweight in gold and precious metal mining shares and related investment as well as cash equivalents. INTAC intends to maintain these concentrated and overweight positions until 2016. The INTAC Global Portfolios and Investment Philosophies are not considered globally diversified across all asset classes and may perform very differently than the major equity markets and/or bond markets.
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