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- Embrace Uncertainty – We think about investing as making moves into the right side of the chart, because every moment is unique and anything can happen on the right side of the chart, it’s impossible to be right all of the time. Thus, we do not need to be always right to be successful in the market, we need to get through the worst days in the market. We don’t want to survive “on average 99.5%”. When it comes to survival, we want to survive through the absolute worst days when the most unexpected events developed.
- Manage Risk – To deal with down-side uncertainty effectively, it’s critical to understand the risk, recognize it, and have a consistent approach to deal with it. It does not mean we can understand everything. It means we understand the critical dimensions that influence the game as well as acknowledge that there are many things beyond our knowledge boundaries. Thus, we always proceed with caution. The best investors make a kill by investing boldly into novel ideas, but with careful calculations and caution. To our investment system, risk management is key.
- Invest Consistently – One of the most tricky thing about investment is that the process can be done perfectly the same between two trades, but the outcomes can be radically different. That’s explained by uncertainty. As we cannot ensure the results in investment world, our truest investment goal is not how many percent we make at the end of the year but is to execute every trade idea consistently with the belief that the results will come accordingly in the long-run. At Altair Cliff, we believe investment is a massive mechanism governs by expected value equation.
- Go for the Home Run – In rare times, and when they come, we will go for the Home Run. There are times when we earn the right to be aggressive, we will be aggressive and go after the kill. To have an extraordinary journey in investment, we have to survive the most severe times, grind it out through normal times, and move in for the kill in certain fortunate moments. In order to locate those moments, we continuously seach and study for every market and life dimension. We don’t know to know but know to act. Still, in turbulence time, the market can behave erratically with substantial volatility that we can end up losing capital even though we are right about the event. Thus, even on those specific moments, we mandate ourselves to be cautious and be defensively aggressive.
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