Denson Advisors LLC determines the nature of the market, which affects the asset classes and styles and types of trading that we can do profitably.

Denson Advisors develops probabilistic hypotheses based on fundamental macro as well as individual industry/sector as well as individual stock research. We consider how we think the world is working and how we think it could look in the future and then test these hypotheses.

These hypotheses are then filtered through focused risk management, with a preference for asymmetric opportunities, with low downside and much larger upside. At Denson Advisors, we know that the structure of the trade and its consequent position in the portfolio and risk management system are often just as important as the underlying investment thesis. We work to make sure they are a priority.

Denson Advisors focuses on undervalued investment opportunities, including publicly traded equities that represent significant return opportunities.  Such companies possess significant earnings upside, often have strong positions in growing and profitable industries, and often benefit from macro and/or secular trends. The overall macro outlook, the stability of the country and markets in which it operates along with the strength of the management will affect and influence whether we take a position and the consequent size and timing of our position(s).

In re: macro, we focus on long term trends as well as short term mispricings, taking into account fundamentals as well as temporary market conditions. We look for external catalysts, outside of the markets, which often provide the biggest impact.

In re: commodities, we focus on fundamentals and the whole curve of futures prices, trading seasonal and directional spreads, as opportunities present, as well as short term opportunities when the research leads us there. Good risk management and risk/reward dynamics are especially important in trading futures. Sometimes options are appropriate in order to maintain themes while minimizing downside and working through significant noise in the markets.

In all that we do, fundamental research, risk management, and trade structuring are key.