Individual Solutions with the “King of Asset Management Classes”
For over a decade, Varengold Bank has had the goal of increasing the capital of its asset management clients with minimal risk. With an individual managed account, you can participate in our innovative ideas and far seeing expertise, fine-tuned to your needs and desires.
Benefits of Diversification
- Wide diversification of the investment capital
- across various investment classes, and
- expert selection of individual investment titles
- maximizes the portfolio’s return while maintaining preset risk levels, and accordingly
- minimizes the portfolio’s risk while maintaining preset return levels!
Varengold has specialized for over a decade in the asset class that uses the Markowitz principle of diversification to achieve above average returns, while reducing the risk of the overall portfolio: Managed futures, the asset class known to the professional world as the “King of the asset management classes.”
Varengold Investment Bank is your expert in the realm of portfolio construction. First off, we do an analysis of the portfolio, and then use the newest research results in financial mathematics and macroeconomics, to provide a stable portfolio optimization in accordance with the Markowitz principle of diversification. Additionally, we take tax and regulatory restrictions into considerations, in order to tailor our solutions to you and your needs.
The scientific groundwork for investment decisions of managed futures managers and the Varengold’s asset management is the principle of diversification (portfolio selection theory) from Harry M. Markowitz, Merton H. Miller and William F. Sharpe. They were awarded the Nobel Prize for Economics in 1990 for their work. They investigated the relationships between financial portfolios, and in 1952 were able to find conclusive results showing the positive effects of investment diversification across various investment classes, such as stocks, bonds, currencies and commodities, as well as diversification across individual securities. The goal of optimal allocation is to achieve an investment portfolio with maximum returns while maintaining preset levels of risk, and likewise, to minimize risks while maintaining preset levels of return. Each investment class possesses different sources of return, which generate profits or losses in different market conditions. By mixing these investment classes, you end up with a portfolio with a balanced return-risk profile.