Armored Wolf, LLC was formed by John Brynjolfsson in 2008. The firm is based in Orange County, California. Armored Wolf, LLC was formed by John Brynjolfsson in 2008. The firm is based in Orange County, California. Prior to forming Armored Wolf, Mr. Brynjolfsson spent 19 years at PIMCO where he launched and grew their Real Assets platform to $80 billion. The company is 100% owned and controlled by its employees.
Armored Wolf manages the Armored Wolf Alpha Fund, a global macro strategy that is structured to observe and profit from macro imbalances created by global inflation/deflation.
The firm has close to $1 billion under management.
The fund like emerging markets and sees moderate risks of inflation. Below is a summary:
So we are in a world of countervailing forces and leanings. Having identified likely long-term trends and risks, we still believe that making bold market calls is not a prudent investment strategy. Instead, embracing uncertainty is a better path for macro managers. Aiming to identify medium-term macro trends, trading uncertainties and probabilities, and flexibly and tactically producing alpha is the goal, and more of a focus in the current environment than ever. The recent drop in correlations supports this strategy.
- Armored Wolf will lean towards inflation, but not necessarily an extreme case anytime soon. A real tail risk exists in bond markets, but there is no need to predict it;
- Upward pressure on commodities is real, but the Sharpe ratio of a pure bull commodity play does not belong in an absolute return strategy;
- We favor emerging markets over developed markets, We are, looking for a potential re-rating of bonds but will not get caught pining for higher equities to go with better growth;
- We are aware of tails in markets but believe some have been taken off the table for the time being;
- Tracking how the world deals with a change in credit is a must, as growth usually requires an expansion of credit, while authorities are merely trying to maintain high levels; and
- Potential changes in US capital gains tax treatment is one issue that is not off the table.