G2 Investment Process

Step 1: Let the market tells you what’s going on, particularly about what the risk appetitie is; and watch what the market is offering (more likely to make money out of value vs. growth, defensive vs. cyclical, etc.)

A. Make an assessment of the state of cycle that is being perceived by the market (down or up cycle)

B. Focus on macro or micro risk events that are ALREADY, but ideally only starting to be, known to professional investors (i.e. being early and not too crowded!)

C. Figure out ways to profit from those events/shifts – pick the least or most leveraged names to play identified event or thesis given the assessemtn of market condition (judgement call on sustainability (earnings power/margin & cashflow)/stability (recurring/repeating revenue base)/visibility (knownable)

D. Watch how each asset class (equity/bond/FX/commodity) and/or each trading idea candidate within one asset class (e.g. within equities, long, short, pair, call/put, ETF, future, etc.) behaves in response to the above events AND correlate to each other?

Step 2: Seek analytical “edge” on each individual stock or security within a specific asset class; maintaining a balance between awareness of short term volatility and eyesight on long term upside; going through checklist items one by one  rigorously

Step 3: Proactively manage risk to profit from market volatility (not hedge for simple hedging sake, but actually making money out of tail risk hedging or long/short pairing)

 Step 4: Structure a portfolio of best of bestideas AND simple trades whose trend is already being formed  and will continue. Always prefer Alpha trades to Beta trades – however, if there is strong conviction Beta trades would work, do the Delta way, i.e. using options to increase delta exposure, to gain Gamma.

Step 5: By using proprietary G2 Top Idea Ranking Model and Techinical Trading Tool, size each major position appropriately and time the entry point wisely to ensure consistency of delivering positive absolute returns

=> Pursuing investing excellence, which requires patience and eyes on big, NOT quick, profit

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