As is standard in the industry, Greenwich Creek Capital uses an asset allocation and a portfolio management strategy to support the allocation. However, what we do (our style) is quite different than the standard.

Let’s break it down:

  1. Our Asset Allocation is “Fundamental & Qualitative”
  2. Our Portfolio Management Strategy is “Quantitative in Nature”

What We Do | Details

Our “Fundamental & Qualitative” approach to allocating assets is based on the concept of correlation. The correlation of asset classes refers to the statistical likelihood that the price of two or more financial instruments will move in the same or opposite direction. So, contrary to what is believed by many in Wall Street, the correlation between asset classes is not consistent over time. This is the main reason why portfolios lost a tremendous amount of capital during the Internet Bubble and the Housing Crisis.

The correlation of asset classes to the economic environment is indeed consistent over time. Therefore, the price of asset classes changes in response to the economic environment. This is paramount to determining our asset allocation.

With this in mind, what factors drive the economic environment? Mainly growth and inflation. Growth can expand or contract and inflation can move up or down. Inflation also determines the future prices of goods and services.

Lastly, these two variables, growth and inflation, will determine monetary policy, implemented by the Federal Reserve.


You may conclude that our qualitative and fundamental approach to asset allocation is grounded on growth, inflation and monetary policy.

In reference to our Portfolio Management Strategy: it is “Quantitative” in nature because it is driven by economic and financial market data. It is data driven combined with a tight “Risk Management” strategy to protect invested capital in down markets.

So, the question you should ask yourselves is…
“Does my portfolio have a reliable asset allocation and risk management strategy in place to perform and protect capital?”
If you have an account with us, the answer is yes!