Self Managed Investments (SMIs) are a digital form of a hedge fund. In theory, any long/short or market neutral hedge fund strategy can also be made available to investors as an SMI. The great advantage of the SMI approach, apart from no fees, is that their value resides outside the fiat financial system. This means that like precious metals and property, they enable a portfolio to diversify away from the counter-party and systemic risks of fiat finance. Donald Amstad of Aberdeen Standard Investments has recently given a sobering analysis of current market conditions where the SMI approach could make a welcomed portfolio component.
The effects of market synchronization are already being felt by the world’s largest pension fund — exactly the scenario where the SMI approach could be of value.
The concept was originally outlined in a number of articles. The links are posted here with the earliest first:
Self-Managed Investing — What is it? What can it do for you?
Self-Managed Investments (SMIs) — Designed to Fail
Why Invest in a Self-Managed Investment (SMI)?
Is Your Portfolio Ready for a Market Correction?