A strategy can only help a portfolio if clients can remain invested through difficult periods. Longboard evaluates ownability through factors such as drawdown duration, recovery experience, and a clear, understandable role in the portfolio.

Longboard seeks to generate returns from sources that differ from traditional stock and bond exposures. Because diversification depends on how investments behave together, advisors should evaluate correlation, portfolio role, and risk alongside any allocation decision.

Longboard uses a systematic, trend-following investment approach, designed for investors seeking a differentiated source of return and diversification within a broader portfolio.

Longboard's strategy is best described as trend following. We seek to identify and participate in durable, long-term trends developing across opportunities within our investment universe, allowing market leadership and relative strength to guide portfolio positioning.

While trend following and momentum are often discussed together, we view them as distinct approaches. Traditional momentum strategies frequently focus on shorter-term price movements and may rebalance based on performance over periods measured in weeks or months. In contrast, our process is designed to capture trends that can develop and persist over much longer time horizons.

A defining characteristic of our approach is patience. When an investment thesis is working, we allow successful positions the opportunity to compound over time rather than exiting prematurely. As a result, some of our most successful investments may be held for years, enabling us to participate in meaningful long-term appreciation. Conversely, positions that fail to demonstrate the characteristics we seek are typically reduced or removed more quickly.

Our philosophy is rooted in the belief that some of the market's most significant opportunities emerge from enduring economic, technological, and behavioral trends. By systematically identifying and following those trends, we aim to participate in long-term wealth creation while maintaining a disciplined, rules-based investment process.

No, while Longboard shares a systematic, trend-following discipline with managed futures strategies, its approach is distinct. Rather than relying primarily on broad macro trends, Longboard seeks opportunities through trends at the individual-security level.

Macro trend strategies generally seek to capture broad moves across asset classes. Longboard focuses on micro trends, trends within individual securities, which may create opportunities even when broader market trends are less persistent.

While we monitor thousands of individual companies, we only invest in securities exhibiting the strongest trend characteristics according to our systematic process.

Longboard is not a market-cap-weighted strategy. Unlike traditional indexes, where a handful of mega-cap stocks can dominate returns, our portfolio is constructed using a risk-based allocation framework. Position sizes are determined by the risk characteristics of each holding rather than simply the size of the company.

This approach helps distribute risk more evenly across the portfolio and allows a wider range of trends to contribute meaningfully to performance. The result is a portfolio that seeks exposure to many independent sources of return rather than relying heavily on a small number of dominant stocks.

Longboard's systematic process establishes a long position when an individual company breaks out to new highs and exhibits a positive trend. If that trend reverses and the security breaks down to new lows, the process generates an exit signal. Proceeds are held in short-term U.S. Treasury bills until the process identifies new qualifying micro trends or reallocates capital to existing positions based on the portfolio's risk targets.

This rules-based approach is designed to participate in persistent trends, exit weakening positions, and avoid forcing capital into securities that do not meet the strategy's criteria.

Each position enters the portfolio sized according to the target risk of the portfolio.

All positions are volatility weighted and represent equal risk contribution to the portfolio.

A majority of the largest winners have historically been held for multiple years.