Core
Role
Core positions are intended to support long-term compounding and form a central part of the portfolio.
They are held because the investor has a durable long-term thesis and expects the position to remain relevant across normal market cycles.
Time horizon
Long term.
Short-term volatility does not, by itself, determine whether the position still belongs in the portfolio.
Review focus
Core positions should be reviewed by asking:
- Is the long-term thesis still intact?
- Has the competitive position or fundamental quality changed?
- Has the role of the position changed?
- Does the position still serve its intended Core role?
Decision-making process
Decisions should be based primarily on changes in the thesis, role, fundamental quality, and valuation context—not on short-term price movement alone.
Conditions that may justify further review include:
- A material weakening of the thesis
- A significant change in the business or investment case
- A change in the intended role
- A valuation or risk context that requires reassessment
The purpose is not to prescribe an automatic action, but to define the questions and conditions that should be reviewed before the investor decides whether to continue holding, add, reduce, exit, or reclassify the position.
Volatility Harvester
Role
Volatility Harvester positions are intended to benefit from recurring price movement and changing market conditions rather than from a purely long-term buy-and-hold thesis.
They are held because the investor expects volatility, momentum, or repeated market swings to create opportunities to manage the position over time.
Time horizon
Medium term.
The position may remain in the portfolio for a meaningful period, but its management depends directly on market conditions, volatility, momentum, and price behavior.
Review focus
Volatility Harvester positions should be reviewed by asking:
- Is the position still behaving in a way that supports its intended role?
- Are current market conditions still suitable for this type of position?
- Has momentum, volatility, or trend behavior changed materially?
- Is the original reason for holding the position still valid?
- Has the position begun to serve a different role?
Decision-making process
Decisions should be based on the relationship between the position’s intended role and the current market environment.
The review may consider:
- Whether market conditions remain supportive
- Whether volatility is still creating manageable opportunities
- Whether momentum or trend behavior has weakened
- Whether the original thesis remains intact
- Whether the position should remain in this Segment or be reclassified
The purpose is not to generate automatic trading signals, but to define the conditions that should be reviewed before the investor decides whether to continue holding, add, reduce, exit, or reclassify the position.
Event / Tactical
Role
Event / Tactical positions are held because a specific event, catalyst, or defined market development may create an opportunity.
Their role depends on a clear reason that can be identified in advance, such as a company event, regulatory decision, industry development, policy change, or another time-bounded catalyst.
Time horizon
Medium term.
The relevant time horizon should reflect the expected development and resolution of the event or catalyst.
Review focus
Event / Tactical positions should be reviewed by asking:
- Is the original event or catalyst still relevant?
- Has the expected timing changed?
- Has the probability or potential impact of the event changed materially?
- Has new information weakened or strengthened the original thesis?
- Has the event already occurred, been delayed, or become irrelevant?
- Has the position begun to serve a different role?
Decision-making process
Decisions should be based primarily on the development of the specific event or catalyst for which the position is held.
The review may consider:
- Whether the catalyst remains active
- Whether the expected timeline remains reasonable
- Whether the potential outcome has changed
- Whether the risk surrounding the event has increased
- Whether the original thesis remains intact
- Whether the position should remain in this Segment or be reclassified
Once the catalyst has occurred, failed, been cancelled, or lost its relevance, the position should be reassessed rather than continued automatically.
The purpose is not to predict the outcome of the event or prescribe an automatic action, but to define the conditions that should be reviewed before the investor decides whether to continue holding, add, reduce, exit, or reclassify the position.
Asymmetric Optionality
Role
Asymmetric Optionality positions are held because they may offer unusually high upside relative to the amount of capital committed.
Their role is to provide exposure to a potentially transformative outcome while limiting the portfolio impact if the thesis fails.
These positions are not expected to provide stable or predictable returns. Their value depends on the possibility that a significant development, adoption curve, technological breakthrough, business inflection, or other major change creates a disproportionately positive outcome.
Time horizon
Medium term.
The position may require patience, but it should remain tied to a clearly defined thesis and the developments that could unlock the expected asymmetric outcome.
Review focus
Asymmetric Optionality positions should be reviewed by asking:
- Is the original asymmetric thesis still intact?
- Are the developments that could unlock the upside still progressing?
- Has the probability of the expected outcome changed materially?
- Has the potential upside narrowed or become less meaningful?
- Has the downside risk changed materially?
- Has the position begun to serve a different role?
Decision-making process
Decisions should be based primarily on whether the asymmetric relationship between potential upside and downside remains credible.
The review may consider:
- Whether the key milestones are progressing
- Whether the underlying thesis remains valid
- Whether new information changes the probability of success
- Whether the potential reward still justifies the risk
- Whether the original source of optionality still exists
- Whether the position should remain in this Segment or be reclassified
A sharp price decline does not automatically invalidate the position, and a sharp price increase does not automatically confirm the thesis. The relevant question is whether the conditions supporting the asymmetric outcome have changed.
The purpose is not to identify guaranteed high-upside investments or prescribe an automatic action, but to define the conditions that should be reviewed before the investor decides whether to continue holding, add, reduce, exit, or reclassify the position.
Low Attention
Role
Low Attention positions are intended to provide long-term exposure without requiring frequent monitoring or active management.
They are held because the investor believes the investment can remain relevant over time while requiring less ongoing attention than other positions in the portfolio.
Time horizon
Long term.
These positions are expected to remain in the portfolio through normal market fluctuations, provided that their original role and thesis remain valid.
Review focus
Low Attention positions should be reviewed by asking:
- Is the original long-term reason for holding the position still valid?
- Has there been a material change in the investment, fund, market exposure, or underlying structure?
- Does the position still require only limited ongoing attention?
- Has the position begun to serve a different role?
- Is there any new development that requires a deeper review?
Decision-making process
Decisions should be based primarily on material changes in the thesis, structure, or intended role—not on routine short-term price movements.
The review may consider:
- Whether the original long-term exposure remains relevant
- Whether the investment continues to function as expected
- Whether a structural or fundamental change has occurred
- Whether the position now requires more active monitoring
- Whether the position should remain in this Segment or be reclassified
The absence of frequent review does not mean that the position should be ignored. It means that attention should be proportionate to its intended role.
The purpose is not to prescribe an automatic action, but to define the conditions that should be reviewed before the investor decides whether to continue holding, add, reduce, exit, or reclassify the position.
Cash
Role
Cash is held to provide liquidity, flexibility, and capacity to take advantage of future market opportunities.
Its role is different from the other Segments because it is not primarily intended to generate long-term capital growth. It serves as available capital that can be deployed when attractive opportunities arise.
Time horizon
Cash does not have a standard investment time horizon.
It may remain available until the investor identifies an opportunity that justifies using it.
Review focus
Cash should be reviewed by asking:
- Is there enough Cash available to take advantage of meaningful market opportunities?
- Has the amount of available Cash changed materially?
- Is the current Cash level consistent with the investor’s intended ability to act when opportunities arise?
Decision-making process
Decisions should be based on whether the current Cash level provides sufficient flexibility to respond to market opportunities.
Cash may increase after positions are reduced or exited and decrease when capital is redeployed.
The purpose is not to prescribe a fixed Cash percentage or determine when capital should be invested. It is to ensure that Cash remains available as a practical source of flexibility when opportunities emerge.
