Mr Singer, a leading expert on global macro-economics who visited Australia last week from William Blair’s head office in Chicago, said current geopolitical events give fewer people greater influence.

“This affects market prices and impacts the performance of portfolios,” he said.

To help navigate the turbulence between existing opportunities and ultimate performance, William Blair’s DAS team has devised Game Theory.

“Game Theory provides a framework for making sense of current geopolitical and macroeconomic developments,” Mr Singer said, “And for assessing why prices deviate from values to help determine if investment opportunities provide enough compensation for the risk involved.”

Mr Singer, a pioneer in advancing the active management of multi-asset and currency portfolios, said William Blair’s DAS team positions portfolios to benefit from or protect against potential displays of power.

“We seek short-term opportunities to modify the timing and magnitude of investment positions and benefit from the inevitable long-term movement of market prices toward fundamental values,” he said. “We then position the portfolio to take advantage of the opportunity or to eliminate the risk.”

While William Blair has used Game Theory informally in the past, the process has now been systematized and is an integral part of William Blair’s three-stage DAS investment process.

“We now employ Game Theory across our Macro Allocation Fund, DDA SICAV and private funds,” Mr Singer said.

William Blair has an Australian and New Zealand presence, headed up by Australian executive, Alex Francois.

“During my recent visit Down Under, Australian institutional investors showed keen interest in Game Theory,” Mr Singer said. “We are looking forward to working with them.”

The post Game On: William Blair uses Game Theory to Sharpen Portfolio Performance appeared first on AdviserVoice.