Very few strategies in our portfolio have correlation of 50% or more with each other, creating a powerful hedge against market volatility.
Most strategies show minimal correlation with each other, ensuring portfolio diversification benefits.
Our litigation finance strategy has delivered positive returns in every single month since inception.
Our core strategies protect capital during market downturns, with minimal historical losses.
When equities decline, our alternative strategies continue generating returns. Litigation finance, private credit, and life settlements operate independently of market cycles, providing consistent income regardless of broader economic conditions.
Our diversified approach ensures steady returns whether markets are rising, falling, or sideways. The combination of uncorrelated strategies creates a resilient portfolio that performs in all environments.
Low correlation between strategies is key to reducing portfolio volatility and providing consistent returns across market cycles.
| Strategy | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 1.00 | 0.30 | 0.06 | 0.26 | 0.05 | 0.07 | -0.20 | -0.03 | 0.11 | -0.05 | 0.34 | 0.00 | 0.20 | 0.17 |
| 2 | 0.30 | 1.00 | 0.29 | 0.21 | 0.12 | 0.22 | 0.14 | 0.06 | 0.32 | -0.06 | 0.15 | 0.13 | 0.29 | 0.32 |
| 3 | 0.06 | 0.29 | 1.00 | 0.61 | 0.15 | -0.20 | -0.17 | 0.13 | 0.07 | 0.44 | 0.31 | 0.33 | 0.55 | 0.38 |
| 4 | 0.26 | 0.21 | 0.61 | 1.00 | 0.21 | -0.17 | -0.14 | -0.15 | -0.10 | 0.43 | 0.53 | 0.33 | 0.36 | 0.12 |
| 5 | 0.05 | 0.12 | 0.15 | 0.21 | 1.00 | 0.07 | -0.11 | -0.29 | 0.16 | 0.19 | 0.19 | 0.21 | 0.25 | 0.07 |
| 6 | 0.07 | 0.22 | -0.20 | -0.17 | 0.07 | 1.00 | 0.07 | 0.08 | 0.32 | -0.11 | -0.12 | -0.33 | -0.01 | 0.02 |
| 7 | -0.20 | 0.14 | -0.17 | -0.14 | -0.11 | 0.07 | 1.00 | 0.11 | -0.15 | -0.15 | 0.12 | 0.05 | 0.02 | -0.28 |
| 8 | -0.03 | 0.06 | 0.13 | -0.15 | -0.29 | 0.08 | 0.11 | 1.00 | 0.39 | 0.20 | 0.11 | -0.02 | 0.19 | 0.04 |
| 9 | 0.11 | 0.32 | 0.07 | -0.10 | 0.16 | 0.32 | -0.15 | 0.39 | 1.00 | 0.12 | -0.05 | -0.21 | 0.12 | 0.17 |
| 10 | -0.05 | -0.06 | 0.44 | 0.43 | 0.19 | -0.11 | -0.15 | 0.20 | 0.12 | 1.00 | 0.41 | 0.02 | 0.30 | -0.02 |
| 11 | 0.34 | 0.15 | 0.31 | 0.53 | 0.19 | -0.12 | 0.12 | 0.11 | -0.05 | 0.41 | 1.00 | 0.38 | 0.36 | -0.07 |
| 12 | 0.00 | 0.13 | 0.33 | 0.33 | 0.21 | -0.33 | 0.05 | -0.02 | -0.21 | 0.02 | 0.38 | 1.00 | 0.21 | 0.09 |
| 13 | 0.20 | 0.29 | 0.55 | 0.36 | 0.25 | -0.01 | 0.02 | 0.19 | 0.12 | 0.30 | 0.36 | 0.21 | 1.00 | 0.36 |
| 14 | 0.17 | 0.32 | 0.38 | 0.12 | 0.07 | 0.02 | -0.28 | 0.04 | 0.17 | -0.02 | -0.07 | 0.09 | 0.36 | 1.00 |
Note: The low and negative correlation between strategies reduces the volatility of the overall fund and demonstrates their independence. Values range from -1.0 (perfect negative correlation) to 1.0 (perfect positive correlation).
Traditional 60/40 portfolios are highly correlated—when stocks fall, bonds often follow. This concentration risk exposes institutional investors to significant drawdowns during market stress, limiting true diversification benefits.
By adding Advantage Orion to an institutional portfolio, investors gain true diversification through uncorrelated strategies that reduce portfolio volatility while maintaining competitive returns across all market cycles.