Investment Process
Rather than trying to time markets, pick individual stocks or chase yields, Coburn Barrett seeks to profit from harnessing continued growth in global GDP, but does not believe that the specific source of that growth can be repeatedly predicted. It believes long term investing is best executed by exposure to a broadly-diversified portfolio of global assets designed to capture as much GDP growth as possible and from long-term compounding of returns. It targets downside risk levels equivalent to those of the S&P 500. This target makes GLI an appropriate equity replacement product even though it takes a multi asset approach. Its long-term risk profile could make it suitable for pension funds or endowments.
The structure of the portfolio is globally representative of the world’s investible liquid asset universe. Coburn Barrett uses leverage to generate a risk profile similar to leading equity indices, generally the S&P 500.
The portfolio generally comprises a broad range of assets in the bond, money market, equity and commodities sectors, with small allocations from others added from time to time. Coburn Barrett measures its returns in US dollars and manages its non-dollar exposure via an overlay programme covering roughly 60% of its non-dollar exposures.