Investment strategy
Build around risk.
Invest across markets.
Gulfstream’s All Weather approach seeks to balance risk across asset classes rather than rely on dollar allocation alone.
Two views of
the same portfolio.
Dollar weights show where capital is invested. Risk contributions show what may drive the portfolio.
A relatively small allocation to a volatile investment can contribute a large share of overall portfolio risk. Correlations matter, too: holdings with different names may respond to the same economic forces.
Read the portfolio perspectiveTwo different ways to understand a portfolio
Capital allocation
Where the dollars sit
Investment weights describe how capital is distributed among holdings.
Risk contribution
What drives the outcome
Weights, volatility and correlations together shape portfolio risk.
Conceptual explanation, not measured portfolio data. Different holdings may share the same economic risks. Diversification does not ensure a profit or protect against loss.
Diversification depends
on relationships.
Adding investments can reduce volatility, but the result depends on how they move together. This model isolates that relationship under a fixed set of assumptions.
Number of equally weighted return streams
Explore the model
15 equal-weight streams with 0% correlation.
Model assumptions and method
Relative volatility = square root of [correlation + (1 − correlation) ÷ number of streams]. All streams have equal weights and identical individual volatility, with fixed common pairwise correlation.
No fees, taxes, leverage, transaction costs or liquidity constraints are included. Correlations change. Volatility is not a complete measure of risk, and zero correlation does not necessarily mean independence. The model is educational, not a forecast or strategy result.
Portfolio-variance foundation: MIT Sloan: Diversification.
Correlation changes
with the environment.
Stocks and bonds do not maintain a fixed relationship. A portfolio designed around one historical correlation can behave differently as inflation, growth and other conditions evolve.
We consider economic exposures alongside asset-class labels. Equity, credit, commodities, interest-rate and alternative-strategy exposures can overlap across funds and categories.
The relationships between investments can change over time. Historical patterns do not guarantee future diversification benefits.
One portfolio.
Multiple economic environments.
Gulfstream’s All Weather approach seeks to balance risk across asset classes. Its objective is equity-like returns with lower risk and greater consistency across economic environments. These are objectives, not assurances.
An investment opportunity set, not a model allocation.
These categories describe the investment opportunity set, not current holdings or portfolio weights. Categories can share return drivers; 24 categories does not mean 24 independent streams. Availability, eligibility and suitability vary. There can be no assurance that the strategy achieves its objectives, and diversification does not protect against all losses.
Find the flow.
Start with what you
want your capital to do.
Tell us about your goals and the investment questions you’re working through.
Start a conversation865.874.6248