WHAT WE DO
Across Asset Classes – Across Time Horizons – Across Analytical Disciplines
Cross Asset Analysis and Strategy: Tallbacken Capital Advisors, L.L.C. (“Tallbacken”) provides top down cross asset macro research to institutional asset managers. We develop long term frameworks from which we identify long term price objectives for the major asset classes. We also produce tactical trade ideas, typically expressed through ETFs or futures as well as single names. While our longer term frameworks inform our tactical trade ideas, the success or failure of each tactical trades informs our longer term frameworks. Our goal is to produce strong risk adjusted returns in any macro economic condition over both short and long term investment horizons.
Diving Deep, And Diving Across: In an era defined by persistent central bank driven liquidity and the increasing employment of machine driven trading algorithms, we believe it is imperative to understand any investment in a cross asset context. Equity, rates, FX, credit, commodity and volatility markets are becoming increasingly interconnected and are increasingly defining each other. Political developments in the U.K. can immediately impact German interest rates which spills over to Treasury yields which are then immediately reflected in the performance of a U.S. small cap biotech stock. After we dive deep on the fundamentals of a security, we then consider the investment through a cross asset lens. Diving deep, and then across, is what we think produces the best risk adjusted returns in today’s increasingly cross-wired markets.
Integrating Analytical Disciplines: Our analytical approach is centered on the simultaneous integration of fundamental, technical, volatility and correlation analysis. While our work with equities tends to focus at the index and sector level, we frequently review and recommend individual stocks using both top down and bottoms up analysis. While many of our recommendations are expressed through listed derivatives, our priority is to get the direction of the underlying security