Ajax Diversified Equity Solution


We operate a unique, tactical investment solution that is designed with a goal of achieving superior short and long-term capital appreciation for our clients while minimizing the risk of capital loss. This solution provides a clear alternative to “buy and hold” investment approaches normally used by other investment advisors. It also provides significant diversification compared to single style managers and other “long only” asset managers. It utilizes a proprietary investment strategy designed to identify opportunity and manage risk. By adhering to a strict set of investment rules, we take the emotional or “gut” decisions out of the security selection process and allow our investment managers to make rational and profitable decisions for our clients. We primarily invest in very liquid, publicly traded Exchange Traded Funds (ETFs). The funds we use in our solutions span across Asset Class, Geography, Capitalization, Style and Industry Sector. All client assets are held in their account at Charles Schwab.

This solution looks to mimic the performance of a Long/Short Hedge Fund but without shorting any securities. The solutions provides the performance and reduced risk of a hedge fund but with total transparency (you can see how your account is invested at all times), total liquidity (there are no lock-ups meaning you can get your money within a day if needed) and without the hedge fund fees.


Summary of Ajax Diversified Equity Solution


  • Diversification – ETFs span across Asset Classes, Capitalizations, Styles, and Geography
  • Risk Management – Positions are protected by a Stop Loss Strategy
  • We do not attempt to time the market – we simply React to the Market
  • We have a clearly defined sell discipline – Capital Preservation is Key
  • Provides a Compounding Plan for your portfolio instead of a Buy-and-Hold Plan
  • Actively Managed Solution driven by market trends – Assets are Monitored Daily
  • Non-Emotional decision making process is Structured, Disciplined and Repeatable
  • Tactical Asset Allocation Solution exploits market trends to help our clients profit
  • Cash is a Position and should be used during periods when markets are weak and losing value


The Philosophy


This strategy was founded on the belief that money will gravitate to where it is best being treated in the marketplace. As such, we have designed an investment strategy that identifies market trends and respects, exploits and helps our clients profit from these trends. We strive to always keep our clients’ money placed where it will be “best treated”.

Markets just don’t find themselves down 36.9% or up 28.6% (2008 and 2003 S&P 500 annual performance) overnight. These gains and losses develop over time and are identifiable to those that are looking at the data. There is no good reason why you should have your precious investment capital in a market or asset class (of any kind) that is weak and losing value.


The Process


  • Simple strategy implemented with a sophisticated algorithm that identifies opportunity and manages risk.
  • Strive to move to sectors where money is treated best (Highest Return) and avoid the sectors that are underperforming.
  • Sector Rotation – As the market changes we adapt. We DO NOT attempt to time the market or predict the market direction, but REACT to the market.
  • Cash is a Position – If our algorithm does not identify opportunities, assets are moved to a cash (Money Market or Equivalent) position to await the next identified opportunity.
  • Our strategy removes emotion from decision making and allows rational decisions to be made in a structured, disciplined manner (When to Buy, When to Sell and How Much to Buy/Sell).
  • Diversification through investing in highly liquid, Exchange Traded Funds (ETFs) that allow us to gain exposure to the indexes that track the sectors identified as opportunities.


Risk Management – The Key to Our Solution


Risk is best managed by seeking to minimize capital loss – Capital Preservation is key to our investing strategy.

All positions are protected with stop losses to provide protection against large losses.  Generally our stop losses are set to get you out of losing asset classes or market sectors if the losses reach 10 percent of the capital invested in the asset class or sector.  Since the most capital that can be invested in any one asset class or sector is 20%, the stop losses are set to limit your losses from any one investment to approximately 2% of the value of your total assets under management.

Capital Preservation is Key!

Ajax Capital

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