The foundation of our investment process is the managers’ constant and thorough assessment of general macroeconomic and business conditions. Recognizing these processes is paramount if a manager is to avoid the types of risk that can permanently impair a portfolio and remain able to capitalize on the opportunities that regularly follow periods of severe distress. The goal is to identify businesses and other investment media that will be most affected by large scale, external economic forces. The senior management team at Marketfield has a long public record of anticipating and responding appropriately, as macroeconomic conditions evolve from one cycle to the next.
Over time, we have shown an ability to act appropriately in a wide variety of market conditions and we believe that the willingness to change both our intellectual and portfolio positioning is a key factor in delivering acceptable returns to our clients. We communicate our thoughts constantly both through our written research and direct dialogue maintaining an unusual level of access to senior management.
The products we manage are structured with very broad charters in recognition of the widely different asset and security types that can exhibit leadership from one cycle to the next. Our style, while encompassing a wide array of potential asset classes, will normally concentrate capital in those specific assets that stand to derive the most benefit (or harm in the case of short positions) from the macroeconomic forces that we anticipate. Although our mandate is necessarily broad in any particular cycle, we are likely to utilize only a small portion of the allowable range of instruments.