Efficiency is the ability to do more with less. MosaIQ - Headwater’s proprietary investment management process – seeks to identify behaviorally-efficient investments that can generate higher returns for less risk than their peers.
An investment’s risk/reward profile is dynamic and, over short periods of time, infrequently behaves like its longer-term average. The picture you see is not necessarily the true picture of what happening behind the scenes. Just as a Facebook photo may portray a smiling, happy family; it can obscure the hair-pulling, name-calling, and screaming it took to get everyone to smile at the same time.
Similar misbehavior in the markets creates opportunity for outsized returns relative to the risk needed to create them.
To learn more, watch the video below.