Darling Macro was set up to create investments that recognise that investor behaviour and human emotion have far too much influence over markets in the short to medium term. Monetising these inefficiencies allows Darling Macro to deliver superior risk adjusted returns with far lower expected large losses compared with traditional equity markets.
Over his 16 year career at Deutsche Bank in London and Sydney, Greg tailored solutions for corporate and institutional clients as a senior trader in vanilla and exotic derivatives. More recently, at Westpac Institutional bank, Greg ran a global derivatives trading business, designed collateral portfolio pricing models and managed a quantitative risk algorithm.
The investment strategy was first conceived during the financial crisis period in 2008 and has been tested and enhanced ever since.
Darling Macro has managed Wholesale investor capital, in a series of managed accounts and the Darling Macro Fund, since July 2017.
The principals recognised in markets that these behavioural risk factors exist because of the imperfect and not universally rational way investors:
Evaluate macroeconomic risk factors within current prices;
React to new information; and
Measure and tolerate risk.
These behavioral risk factors are more reliable predictors of asset prices in the short to medium term than merely analysing macroeconomic factors.
The strategy involves a systematic assessment, of the risk and return potential of more than 30 global markets, which rigorously measures the following:
Systematic and rigorous assessment of the risk and return potential of over 30 global markets, measuring:
Returns: how strong are performance trends
Volatility: how much risk is present
Correlation: how much diversification is on offer
Time: how stable are the measures of risk & performance
The strategy systematically selects a blend of assets and optimises the portfolio based on risk to achieve relative stability of allocations.
Transaction costs are minimised through the use of highly liquid passive instruments.
Risk is designed to be controlled throughout the process and the strategy is rebalanced regularly based on changes in the assessed risk and return.