How we still see strong returns when everyone else is down
"Value-Add" Investing
That means if we deploy a dollar, we need to know what our dollar is doing. Why is our dollar needed? Is our dollar actually making a difference, or are we just inflating someone else's balance sheet?
We want to know that our money is actually working to create new value, because dollars at work beat dollars at rest.
That's why we put our capital to work with arbitrage.
When we notice prices of assets significantly diverge across markets, we buy low in one market and sell high in another, pocketing the difference. That's arbitrage in a nutshell. Fundamentally, arbitrage creates new value by delivering better prices for both buyer and seller.
We serve the market, we don't predict the market.
Unlike other types of investing, arbitrage does not require any judgements of value. Arbitrage is reading the market as it is, not as it should be. We live in the spread. The gap between buyer and seller. That means arbitrage enables us to make money in all market conditions. And that's why we haven't lost a cent in today's market environment.
The market rewards our capital because our capital is adding value to the market participants who are often end-users, not traders. We are being paid for our true value-add, not for our ability to predict the market.
Our money is going to "work" and collecting a "pay check".
And unlike everyone else's dead capital, often relying on playing hot potato with inflated assets or leeching earnings off the backs of others, our money is doing a valuable and unique job.
As long as a market exists, so will our returns.
All information provided is for a general audience and is not tailored to any personal financial situation.
¹Low risk as defined by low beta scores. Because arbitrage returns are generally, as a whole, uncorrelated with the market and rely purely on the spread between buyers and sellers in different markets, the "Beta" is generally lower, often associated with lower risk investments. low risk does not mean zero risk. in this context, risk is relative and quantitative. quantitative measures of risks are not guaranteed to be accurate predictors of future performance. Returns are based on the highest potential available spread and are not guaranteed. All investing has risks.
²Arbitrage Today Trial Period can be extended until you see a total return of 30% or greater on a purchased investment.
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Fellow Investors,
I'm sure you're all curious how we managed to keep our portfolio stable and still find substantial returns in these market conditions.
Well, the answer is much simpler than you may think.
Over the last few years, we went back to basics.
We stayed out of the business of short-term speculation. We steered clear of blindly letting our capital follow the herd in mutual funds, ETFs, or other aggregate products.
Why did we do that?
When we looked at our portfolio of all the top public companies, we noticed something seemed off:
There was no clear "work" that our money was doing.
Our capital was being used by large funds to buy the same blue chips as everyone else. On paper, we had returns. But there was no underlying value created as the result of our investment.
In other words, someone or something else was responsible for creating the value and our funds were simply dilutive.
And that really sank in for us.
If this concept isn't clicking for you right away, that's completely normal. Read our "Fundamentals of Value" primer to develop your intuition.
Once it clicked for us, we pulled everything out.
We sold all our diversified holdings and passive investments, and we went 100% cash.
We completely shifted our focus to...
Dollars at work beat dollars at rest.
Remember, there is a limit to the earnings of passive capital. We call it dead weight capital, because that's what it is. You pay to dilute the value others are bringing to the table.
Arbitrage on the other hand, is active capital. That's why the returns are higher.
So what type of returns?
Try 30% returns.
No seriously, try 30% returns with a free trial account.
You can get access to all of our research and we'll show you step by step how we do it. There's a little bit to learn, but it's worth it.
Everyone else is averaging 7%, 12%, or 15% because they have lazy capital, dead-weight capital weighing down the yield or they're inflating the capitalization of a few top companies.
But you can see up to 30% returns if you are willing to learn a thing or two about how to deploy your capital in a value-add manner.
We look forward to the new value you will bring to the world of arbitrage, we're excited to have you aboard.
See you inside,
P.S. I'm getting older and this brand is my legacy. If you're a motivated and coachable individual, call my office at +1 (604) 262-0864 and tell my staff why you'd like to grow your capital. I'm interested in helping people who have strong mission. But first, make sure you already have a trial account. Since there's no credit card required, that's a base requirement.
Simply enter your email below to get started.
James Kos
Founder