While there are articles about 12-year-olds making millions minting NFTs these days – it’s good to know there may still be a place for good old-fashioned hard work. Enter Jason Buck and Taylor Pearson of Mutiny Funds (www.mutinyfund.com), who successfully launched their newest venture – the Cockroach Fund. Running an asset management firm is no easy task. Just see this wonderful thread by @kcerminara on how to build a multi-billion firm:
12. Actually doing all of the above is much harder than you think. It requires grit, perseverance, intellect, charm, great partners, great investors and a lot of luck. There I said it, luck….
— Kyle Cerminara, CFA (@kcerminara) August 29, 2021
And Jason himself took to the airwaves to talk through the challenges on the Pirates of Finance YouTube Channel (thanks for the shout out to RCM, by the way – who acts as the fund’s co-CPO through its attainfunds.com subsidiary, and helps do manager due diligence, clearing, execution, compliance, research, and new investor onboarding).
Who in their right mind would name an investment strategy after cockroaches? Well, probably the guys who view themselves as staging a mutiny against traditional portfolio construction and the investment business = Jason Buck and Taylor Pearson of Mutiny Funds. And what exactly does the Cockroach do?
The Cockroach Fund – How Does it Work?
Well, its primary goal is to be a total portfolio solution that investors can set and forget, in a way – automatically rebalancing between what they call offense and defense. Offense being investments like stocks, bonds, real estate, PE, and VC. Defense being investments like we talk about here often = long vol, tail risk, trend, and Gold.
They believe true diversification protects against four different market regimes and the different path dependencies each of those regimes could represent: Growth, Decline, Inflation, and Deflation. From there, the Cockroach Fund looks to allocate assets equally across the return drivers which should benefit from each of those four market regimes:
And finally – with their belief that it is impossible to know beforehand which one manager or strategy type within each of the four return driver quadrants is likely to be the best performer – they layer on an ensemble approach on top of this ensemble approach, allocating, rebalancing and re-investing across 14 strategies and 80+ markets in these four quadrants:
For the full breakdown of the strategy and more in-depth views into each quadrant, register for more information here or call one of our team at 855-726-0060 to walk you through the portfolio.
Congratulations again to the teams at Mutiny, Attain Funds, and RCM for their collaboration and hard work on making this Fund a reality.
PS – for those of you with trend following on the brain, the Fund is set up to allow for investment into just the Trend portion, giving access to multiple $2,000,000 to $5,000,000 minimum investment managers for just $100k. But we’ll save the details of that for the next post.
