As investment strategies undergo continuous changes prompted by oscillating market dynamics, investors and firms tirelessly look for ways to adapt to the evolving climate. Although traditional methods are reliable overall, they may need to be more flexible. And so, to protect their assets, many investors have started to turn their attention toward novel wealth management strategies.
These shifts have brought forward innovations that fundamentally alter the industry’s landscape and offer investors alternative pathways to grow their wealth. Days Global Advisors, led by seasoned family office wealth advisor Christopher Day, has been at the heart of this progressive movement, ushering in a new era of portfolio management.
Days Global Advisors sets itself apart by combining active management, relying on the strengths of private portfolio management and the merits of ETF investment structures. This blend provides an edge in today’s complex financial landscape, where market volatility and uncertainties demand strategies that can adapt, mitigate risks, and yield returns.
“The market has evolved, and it will naturally continue to do so. All evidence supports the idea that change is absolutely necessary,” says Day, adding that many wealth management firms have turned toward private equity. However, this may not be suitable for everyone because of limited liquidity, long time horizons, and a lack of transparency.
The goal of Day’s mission is to broaden access to alternative strategies that focus on the overall market and hedge against risks, making them available to a wide range of investors. Implementing a macro hedge fund strategy within an ETF, like the one being executed by Day, offers advantages such as liquidity, low entry barriers, and total transparency, which meet the requirements set by the SEC.
“Scalability is another advantage, and since my strategy operates on a macro level, individual stock positions have minimal impact on long-term wealth accumulation and preservation outcomes,” Day explains.
Launching Day’s absolute-return ETF marks a considerable milestone in the investment industry. It offers a novel approach to managing wealth portfolios, making it particularly attractive to investors seeking fresh alternatives to traditional investment methods.
One of the most significant benefits of this strategy is its accessibility. By making a hedge fund macro strategy available to the average investor, the firm democratizes access to investment strategies that were once reserved for a select few.
Day’s groundbreaking investment management approach establishes a new standard for financial institutions to aspire to. The success of this approach, which highlights diversification and active management, hinges on a skillful balance of risk and reward. Its core objective is to mitigate or even capitalize on potential downsides as he did for investors in 2022 while positioning for upward trends, ensuring a steady growth path even in the middle of market uncertainties.
“The preservation of wealth is just as important as its accumulation. If you safeguard your capital when the market is down, the portfolio won’t undergo a sharp decline, and it won’t require as much effort to compensate,” Day says.
Speaking about the best methods to preserve wealth, Day maintains that accumulation through diversification is critical. In particular, he asserts that it’s important for investors to spread out their portfolios across multiple industries and asset types to ensure high returns and minimize losses due to market unpredictability.
“Your assets can be a combination of stocks, bonds, commodities, and even real estate. The key here is to cover as many sectors as you can so that when one market is doing poorly, you can always rely on the other,” Day explains.
Through his social media and the upcoming Days Global Advisors venture, Day shares ‘insider’ tips with this audience, hoping to bring the often complex and confusing finance world closer to the average person. As a vocal advocate of financial literacy, he firmly believes that the notion of ‘generational wealth,’ for instance, is attainable to less affluent individuals as well.
“Regardless of one’s starting point, it’s crucial to remember that financial success is not an exclusive club. It’s within everyone’s grasp if people stay informed and educate themselves about the dynamics of the finance sector. Education is the first and most important step toward prosperity,” Day concludes.
