Our philosophy challenges conventional investment theory and practice.  Central to our investment process is the view that all markets are the same and are driven by liquidity, thus are essentially correlated.  As a result, we reject the assertion that the way to reduce risk is to have a diversification of assets.  In fact, in times of market stress, we view the only places to invest are either in cash, very short dated government securities or gold. 

This view may seem to be controversial, however this is why Barmac have avoided the disasters of property investment, corporate bonds and equities which have been experienced since 2007.

Our investment approach and style has delivered returns with an element of safety for investors, particularly through periods of high market volatility.  Barmac's objective is to provide positive returns with low volatility using a risk averse investment strategy. This involves constructing a diversified portfolio uncorrelated to traditional asset classes which will react differently given any market environment. 

Barmac's investment process was designed some 15 years ago when we first identified that the extensive creation of credit globally was likely to cause a problem in the future.  

Our investment strategy is delivered through a combination of top down (macro-economic analysis) bottom up (micro-economic analysis) and our proprietary, in house technical analysis “The Barmac Indicator”.

In simple terms, The Barmac Indicator will analyse whether markets are in a positive or negative phase. When markets are in a positive phase, we will look to invest in markets and when they are in a negative phase, we will look to move to be invested wholly in cash or near cash.

This strategy aims to guard against major negative market moves and conversely participate in major positive market moves.