Global Dynamic Asset Allocation (GDAA)

Description

   The Global Dynamic Asset Allocation (GDAA) strategy at Bayesian Efficient Strategic Trading, LLC (BEST) is a highly liquid, long/short relative value strategy designed to provide returns that have a low correlation to global fixed income and currency markets.

Philosophy

   We believe market mispricings occur when securities do not respond quickly enough to economic and financial information. We attempt to exploit these opportunities by first processing the market and factor related information efficiently following the Bayesian paradigm, and then taking relative value and directional positions in the fixed income, equity indices, currencies and commodities in G-10 countries. Further, we believe that by using futures and forwards contracts exclusively we avoid taking certain risks, such as spread risk and credit risk, in markets where it is traditional to do so. This strongly supports our philosophy of offering products that have a low/negative correlation to global benchmarks as well as to other cash fixed income managers.