Low-Correlation / Diversifying Strategies

Octant’s low-correlation / diversifying strategies seek to complement your existing portfolio by introducing return streams that may have low correlation to your current portfolio. These types of investments are critical for investors seeking portfolio diversification, volatility smoothing, and protection against market downturns.

Our approach seeks to identify return drivers with historically low correlation to equity markets. This can include spreads (relative returns between investments) and/or tactical positioning, in an effort to generate diversified streams of returns.

It’s important to note that not all investments with low correlation provide robust diversification and historically, some diversifying investments have dragged on returns. Octant seeks to identify investments with low correlation that can also provide attractive returns. In doing so, we seek to mitigate some of investors’ concerns regarding return drag.

For investors who value the stability that can come from a well-diversified portfolio, Octant’s low-correlation strategies offer a potentially attractive opportunity.