Howard Marks

Second-level thinking: buy quality when others panic, control risk

Total Return

+48.5%

Sharpe Ratio

0.83

Max Drawdown

-7.5%

Win Rate

51.0%

Alpha

-51.3%

Comp. Score *

0.21

Risk Parameters

Max Allocation13.8%

Stop Loss7.5%

Take Profit7.1%

Max DD Tolerance7.5%

Rebalancemonthly

Execution Guidance

Order TypeLimit

Entry RuleBuy 0.5% below market in uptrend.

TimingSAFE TO BUY. *

ScalingEnter in 3 tranches over 1-2 weeks.

Positions — Vol-Adjusted Sizing

Symbol	Action	Vol	Stop Loss	Take Profit	Size	Links
HYG	BUY	5%	3.8% below entry	3.5% above entry	27.5%	TV YH
LQD	BUY	7%	3.8% below entry	3.5% above entry	27.5%	TV YH
BND	BUY	5%	3.8% below entry	3.5% above entry	27.5%	TV YH
PFE	BUY	25%	7.8% below entry	7.3% above entry	13.4%	TV YH
MSFT	BUY	24%	7.7% below entry	7.3% above entry	13.4%	TV YH
ABBV	BUY	26%	8.4% below entry	7.8% above entry	12.4%	TV YH
JPM	BUY	25%	8.1% below entry	7.6% above entry	12.9%	TV YH

▶ For Passive Investors (Buy & Hold)

This strategy has decent long-term performance. Consider allocating 5-10% of portfolio. Rebalance quarterly. Use the strategy orchestrator for regime-aware allocation.

Avg 5Y Return

67.5%

Avg 5Y Sharpe

0.77

Avg 5Y Max DD

-9.7%

10Y Return (2015-2024)

151.4%

10Y Sharpe

0.65

10Y Max DD

-10.1%

HODL Composite

0.72

Windows Tested

Consistency

93%