Q: Do you manage client assets?
A: No, this is not my intension. My aim is to generate attention and write an academic paper on robust portfolio optimization on my return. Time will prove if my investment strategy is good enough to offer to clients. Obviously if you like what I am doing, you are more than welcome to contact me.
Q: Does the performance back track include cost?
A: Yes, commission and trading spreads are included in the calculation. Remember that past performance is no guarantee for future returns.
Q: Why do you invest in US ETFs?
A: The spreads are by far tighter and the liquidity higher than in any other market. US ETFs are key to reduce cost to a minimum. Even for foreign investors this justifies hedging cost.
Q: Do you hedge your currency exposure?
A: My real portfolio is held in CHF and is fully hedged by currency futures. The cost of hedging depends on the interest rate difference between the home currency and the US Dollar. For a Swiss investor cost are currently around 2% to 2.50% per annum.