The Portfolio
20%
Target annual return (preferred)
This is what investors receive. The system historically performs well above this — the cushion is what makes the promise sustainable.
On a call: "We target 20% for investors. The system runs significantly above that — the gap is your margin of safety."
Always say "target" or "preferred return." Never "guaranteed."
2.0+
Sharpe ratio over 16 years
For every unit of risk, the system generates 2+ units of return. The average hedge fund is below 1.0. Anything above 2.0 is elite.
On a call: "The risk-adjusted score is above 2.0. The average fund is under 1. That means double the efficiency per dollar of risk."
For analytical prospects only. Most people don't know what Sharpe means — translate it as "return per unit of risk."
<20%
Maximum drawdown (stress-tested)
The worst peak-to-trough decline. The S&P's worst was -56%. Ours is under 20% even stress-tested. That's the "sleep well at night" number.
On a call: "The worst-case scenario in our stress tests is under 20% down. The S&P has dropped 56%. That's the difference between a bad quarter and a life-altering loss."
This is stress-estimated, not a limit. Always say "stress-tested" to indicate it accounts for worst-case scenarios.
11
Independent strategy engines
Not 11 variations of the same thing. Eleven genuinely different strategies across different markets with near-zero correlation.
On a call: "It's like owning 11 businesses in 11 different industries. When one has a slow month, the others don't even notice."
The Edge
0.04
Average correlation between engines
The S&P's top holdings correlate at 0.79. Our engines correlate at 0.04. When one struggles, the others don't even know about it.
On a call: "The S&P's stocks move together at 0.79 out of 1. Our strategies move together at 0.04. That's the real diversification — not 500 names in the same boat."
92%
Win rate on NLP earnings scoring (top quintile)
The system reads CEO psychology on earnings calls and picks the top 20%. That top 20% wins 92% of the time.
On a call: "One of our engines reads how a CEO answers questions — not the numbers, the psychology. The top picks win 92% of the time. That's one of eleven engines."
This is one engine's stat, not the whole portfolio. Make that clear. "One of our eleven engines..."
158→11
Strategies tested vs. survivors
We killed 93% of everything we built. The 7% that survived are the 11 engines running today.
On a call: "We tested 158 strategies and killed 147 of them. Nobody faking results would show you the graveyard. The 11 that survived earned their place."
The Proof
+2.8%
Return during the COVID crash
The S&P fell 34% in weeks. The system returned +2.8%. The single most powerful stat you have.
On a call: Say it, pause, and let them do the math. "During COVID, the S&P dropped 34%. The system made 2.8%. Positive." Then stop talking.
Always pair with the S&P's -34% so the contrast is immediate. The silence after is doing the work.
+7.3%
Return during the 2022 bear market
Stocks fell 25%. Bonds fell too. The classic 60/40 portfolio lost 16%. The system made 7.3%.
On a call: "2022 was the year that proved 'diversified' portfolios aren't. Stocks AND bonds dropped. The standard advice lost 16%. We made 7.3%."
The Terms
0%
Management fee
Most funds charge 2% whether they make money or not. We charge zero. We earn only on performance above the target. If we don't perform, we don't eat.
On a call: "There's no management fee. Zero. We only get paid when you make money above the target. That means our incentives are perfectly aligned with yours."
The performance fee (20% above target) exists. If asked, explain it clearly: "We take 20% of profits above the target return. Below that, we earn nothing."