Convergent Strategies

• Markets trade through various cycles and, during rational periods, markets tend to exhibit lower volatility with prices being driven by fundamentals and value.
• Convergent strategies are positioned to seek to capture returns in these environments

Divergent Strategies

• Markets from time to time exhibit irrational periods where volatility spikes and markets trade under stress conditions with fear and greed driving prices, as opposed to fundamental information.
• During these times traditional portfolios often exhibit large left-hand tail resulting in potentially large losses.
• It is during these periods that Divergent strategies are needed.

*The information above is for illustrative purposes only. Past performance does not guarantee or indicate future results.