Zazen Capital Management
Zazen Capital Management
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Philosophy
Philosophy
My trading philosophy is simple. I approach the markets from a contrarian perspective. I challenge mindlessly accepted axioms held by most market participants. Many trader attempt to control risk through diversification. But today, more than ever, many financial instruments and world markets are highly correlated and interdependent. Diversification is not an unparalleled panacea for risk. Extreme discipline coupled with intense focus is the preeminent precedent for risk control. This is what allows me to exploit high reward opportunities.
My trading philosophy is simple. I approach the markets from a contrarian perspective. I challenge mindlessly accepted axioms held by most market participants. Many trader attempt to control risk through diversification. But today, more than ever, many financial instruments and world markets are highly correlated and interdependent. Diversification is not an unparalleled panacea for risk. Extreme discipline coupled with intense focus is the preeminent precedent for risk control. This is what allows me to exploit high reward opportunities.
I do not attempt to match the benchmark index performance like so many other traders do. Instead I strive to outperform in bull and bear markets. Carefully concentrated portfolios combined with extreme discipline and intelligent risk control limits can greatly outperform. By developing simple, robust, high probability edges, I narrow my portfolio of candidates to those that have the potential for explosive and outlier moves in my favor. Stocks, ETFs and futures are selected with the highest potential for out-performance.
I do not attempt to match the benchmark index performance like so many other traders do. Instead I strive to outperform in bull and bear markets. Carefully concentrated portfolios combined with extreme discipline and intelligent risk control limits can greatly outperform. By developing simple, robust, high probability edges, I narrow my portfolio of candidates to those that have the potential for explosive and outlier moves in my favor. Stocks, ETFs and futures are selected with the highest potential for out-performance.
Both fundamental and technical data is used to produce returns that are not dependent on major markets. Both long and short, value and growth ideas are researched to find high reward, low risk opportunities. Both robust quantitative and high conviction qualitative strategies are aggressively pursued to capture returns that outpace the markets.
Both fundamental and technical data is used to produce returns that are not dependent on major markets. Both long and short, value and growth ideas are researched to find high reward, low risk opportunities. Both robust quantitative and high conviction qualitative strategies are aggressively pursued to capture returns that outpace the markets.
The myth of achieving above average returns with buy and hold strategies has long been dispelled. My portfolios are actively managed to minimize ‘dead money’ and maximize gains. Just as important as exceptional alternative investment ideas, so is having a select group of traders that share our beliefs that outside the box ideas, contrarian approaches, simple and robust strategies can lead to exceptional performance. Being supported by other disciplined traders is a tremendous edge.
The myth of achieving above average returns with buy and hold strategies has long been dispelled. My portfolios are actively managed to minimize ‘dead money’ and maximize gains. Just as important as exceptional alternative investment ideas, so is having a select group of traders that share our beliefs that outside the box ideas, contrarian approaches, simple and robust strategies can lead to exceptional performance. Being supported by other disciplined traders is a tremendous edge.
There is an ebb and flow to portfolios and seasoned traders understand this. Drawdowns are an indisputable fact of life in the trading world. Pretending they don’t happen or that they rarely occur does a disservice to traders. What matters is the bottom line at the end of the year. My focus is the bigger picture, not the small ups and downs, and consistently locking in profits year after year.
There is an ebb and flow to portfolios and seasoned traders understand this. Drawdowns are an indisputable fact of life in the trading world. Pretending they don’t happen or that they rarely occur does a disservice to traders. What matters is the bottom line at the end of the year. My focus is the bigger picture, not the small ups and downs, and consistently locking in profits year after year.
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