Investment Philosophy

Sarhan Capital’s investment approach is designed to capture above average risk adjusted returns from global capital markets targeting 20% annual returns.

Key Features:

  • Ability to capture trends in bull & bear markets
  • Weekly analysis of capital markets
  • Technical Analysis coupled with pattern recognition and weekly trend confirmation
  • Global fundamental views that are formulated with an intermediate term horizon
  • Broad diversification of analysis refined into concentrated positions
  • Rigorous risk management

Interpret, Not Predict, Market Action

The trading decisions are derived from a weekly analysis of global capital markets. The weekly analysis does not aim to predict market action; instead it simply interprets what is actually happening. The strategy combines fundamental and technical analysis with a psychological and strict risk management overlay aimed at achieving above average risk-adjusted returns in both bull and bear markets.

How We View The World- Markets Trend

Fact: Markets trend. Armed with this knowledge, our approach is designed to identify and capitalize on these invariable trends. Sarhan Capital believes that capital does not know any borders, which makes it truly fluid; hence capital will follow the path of least resistance and will always flow to an investment with the most favorable risk/reward ratio. This process feeds upon itself and ultimately creates market trends that we look to capture. Sarhan Capital looks to identify, as early as possible, where capital will flow at any given moment and capture intermediate term trends as they develop in real-time.

Competitive Advantage – Psychology Is Constant

One of Albert Einstein’s greatest discoveries occurred when he realized that the speed of light is constant. Keeping that in mind, one of Sarhan Capital’s greatest discoveries occurred when we realized that markets and players change,but human nature remains constant. Human nature has been the one constant that has occurred in every single major bubble and subsequent bust throughout recorded history. Sarhan Capital has developed a unique system to remove human emotion from the decision making process. All major trading decisions are developed while the market is closed and written down in a clear detailed and concise fashion with proper facts (annotated charts) and presented to our clients. Then, our team simply follows the plan which allows us to be prepared for all possible outcomes.

Use of Technical and Fundamental Analysis:

Sarhan Capital believes that most people misuse fundamental and technical analysis. Since most people have a deep desire to “know” what will happen, they use these tools to predict market action. Alternatively, Sarhan Capital believes that no one “knows” what will happen in the future, especially in a complex and fluid macro environment. Therefore, the misuse of these tools is what leads to subpar performance by so many people in our business. Additionally, most people’s psychological barriers prevent them from operating comfortably in the “unknown.” This causes an insatiable need for a false predicative tool or some other nonexistent and counterproductive instrument (enter negative news headline of choice here). To circumvent this common mishap, Sarhan Capital remains humble and does not try to predict market action. Instead, Sarhan Capital focuses on the now and is comfortable operating in the unknown (thanks to stringent risk management factors and the proper use of fundamental and technical analysis; to interpret, not predict, what is actually happening). All decisions are made based on what is actually happening in global markets, not on what any one person thinks will happen.

Investment Strategy

Sarhan Capital and all of its subsidiaries employ a stable and proprietary approach to trading capital markets. The approach combines fundamental and technical analysis with stringent risk management criteria to develop sound trading themes. Once developed, our trading strategy employs trend analysis, which enables us to identify trending markets in the earliest stages then make decisions of their potential moves, on either the long or short side(s). The investment strategy initially utilizes fundamental analysis to select optimal conditions, and then uses technical analysis and chart patterns to determine advanced (early) entry/exit signals and identify strong trading opportunities. Typically, trades are placed via an electronic trading platform and are entered with supporting stop orders expressing pre-determine risk levels. Prior to placing trades, position size and risk/reward ratios are carefully calculated to incorporate proper risk management tactics. The core of this approach relies on a strong macro view. Market fluctuations are driven by a host of other factors which must be assessed and acted upon, including but not limited to:

  • Market Direction (Bull, Bear, Sideways)
  • Fundamental Data
  • Technical Indicators
  • Psychological Inputs
  • Economic Cycles
  • Inflation Cycles
  • Political Landscape

These factors are carefully analyzed to make well informed decisions from a vast spectrum of global capital markets and leading stocks. Our investment approach is based on the simple notion that: fundamental analysis is used to develop consistent trading themes while technical analysis is used to determine when to enter and exit each position.

Always Respect Risk:
Very Strong Focus On Proper Risk Management

Supporting our investment thesis, we further employ a stringent risk management strategy intended to mitigate risk while striving to achieve consistent results. This system helps to ensure that losing positions are immediately closed out when losses fall below a predetermined threshold. Furthermore, we believe that any effective trading strategy should consistently focus foremost on this type of risk management criteria to avoid wild profit and loss swings. By striving to achieve consistency and properly incorporating risk management we believe these are the necessary steps in capitalizing on market trends.

A Brief History of The Global Economy: 

We have studied every major economic cycle going back to the 3rd century – here. The economy has evolved tremendously over the past several hundred years (below) and in today’s world the two major takeaways are: The most valuable asset on earth is TIME and the most valuable commodity is INFORMATION. At the very least take a free 30-day trial to (FLS) today. FLS is designed to make you money and save you time by giving you better information. Take A Free 30-day Trial Now

Evolution/History of The Global Economy

1. Agriculture Age:
For centuries, the global economy was almost fully dependent on agriculture. Then in the mid 1700′s things changed. Thanks in part to a concurrent explosion in technology, communication, and transportation, the Industrial Revolution was born and changed the global economy – forever.
2. Industrial Revolution  Ushers In The Industrial/Services Age:
The Industrial Revolution began in the late 1700′s and lasted for about a century. This was a paradigm shift for the global economy. People migrated in droves to large cities and the age of mass-production was born (copper and other industrial metals played an integral part during this period because they were used to build “stuff”). The main driver for most developed economies during that time was goods and services. Furthermore, as each country’s economy developed it invariably moved more towards services and away from goods.
3. Information Age:
Then in the late 1900′s, another major paradigm shift occurred – Information become the primary engine of the global economy and quickly became the most valuable commodity on the planet. For the last several decades, more money has been created than the entire history of the world & most of it is based on buying/selling information/ideas (that is why copper/other industrial metals are not as important as they once were to global economic growth and information is now king).

Bottom Line: Knowledge Is Power

In today’s world, knowledge really is power. Keep in mind, in order to get ahead it is not enough to have information, you need to know how to use it. Additionally, people are willing to pay for it. In fact, our entire business (and most of the financial service sector) is based on buying and selling information. If we provide you with “intelligent” ideas you will be happy and stay with us for life (or until we stop providing you with good information). So in order to earn and keep your business, our job is simple: provide you with intelligent ideas in the market. 

“An investment in knowledge pays the best interest.” – Benjamin Franklin

Invest in Knowledge

Education is the fabric of our foundation. Get ahead now… Start your 30-day free trial today and have your money work for you.

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