Solent: Systematic Investment Strategies
Solent is the brainchild of Roderick Collins, Professor Andrew Clare and Professor Steve Thomas of the Cass Business School. The central proposition is that financial markets are unforecastable, using the macro-economics, subjective market analysis and human judgement advocated by many investment strategists. The solution to this conclusion is not passive investment, since passive leaves the investor exposed to all the volatility of the market which, as we have seen with the FTSE 100, can lead to a drawdown of 60%.
Solent has identified several rules-based approaches to investment, with no human judgemental intervention, which may be characterised as “clever passive”. The entire Solent methodology is “glass box” not “black box”, i.e. it is transparent and explained in detail in the peer reviewed papers to be found in the research tab.
A principal technique is trend following (basically a comparison of the current price of a market with its long term moving average). When the market is in an uptrend the asset should be held; when in a downtrend…
The Entire Solent Methodology is ‘Glass Box’ not ‘Black Box’, i.e. it is transparent and explained in detail.