Galt practices behavioral finance, and explores the relationship between
investor psychology, price trends and price behavior. Other styles practiced
by colleagues in the investment community include Growth, Income, Macro,
Neutral, Opportunistic, Short Selling, and Value, among others. For your
reference, a brief description of each listed style follows. We believe, as
did Heraclitus, that the cosmos speaks in patterns, and further that such
patterns are recorded by the free marketplace of price movements.

Behavioral Finance

Practitioners observe psychologically important patterns of instrument price movements and prospectively reacts to changes in those price movements. As a general rule, trend followers engage directional movement during only a portion of that movement. Trend followers typically trade without making predictions.  To learn more about the Galt Institute, and our trend following trading seminars, please click here.

Growth

The Growth investor takes positions in instruments, usually equities, predicted to experience rapid growth.

Income

Income investors focus on present yield, and current income, rather than on capital gain in the underlying instrument.

Macro

Macro investors predict market and instrument directions through analysis of macroeconomic factors. Typically participating opportunistically in major markets, the macro investor hopes to profit from broadly based changes in official policies through directional, perhaps leveraged, trades.

Neutral

Market neutral managers typically strive to eliminate (through hedging) market, currency and interest rate risks, while retaining in the portfolio risk specific to a select instrument or group of instruments.

Opportunistic

The opportunistic manager may trade in any instrument or asset class that, because of event-driven strategic observation, appears most favorable at the time.

Short Selling

The short seller has a portfolio consisting largely of securities sold short, and aims to profit through the later repurchase of those securities at some lower price.

Value

Value investors are certain that any particular instrument has an intrinsic true value determinable through fundamental analysis. The value investor purchases instruments trading at a discount to perceived intrinsic value, and sells instruments trading at a premium to perceived intrinsic value.

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