Shell Capital pursues
asymmetric investment returns
by actively managing risk
and dynamically adapting
to evolving markets.
Shell Capital pursues
asymmetric investment returns
by actively managing risk
and dynamically adapting
to evolving markets.

Shell Capital Overview

Shell Capital Management, LLC is a registered investment advisor founded by Mike Shell in 2004 to be the investment manager of Asymmetry® Managed Portfolios, Mike Shell is the President, Chief Investment Officer, and portfolio manager applying unconstrained tactical decisions, active risk management, and directional trend systems to a global universe of markets through exchange-traded securities (ETFs, etc.).

Why Asymmetry®

Investors are loss averse, so we need to actively manage risk. 

Investors experience the pain of loss twice as much as the joy of gains. The only certainty in decision-making is uncertainty. For every potential for gain, there is a risk of loss.  We must choose to accept the risk, or not. Nobel Prize-winning behavioral research finds that losses loom larger than gains and that people are loss averse. This asymmetry between positive and negative experiences has an evolutionary history. Organisms that treat threats as more urgent than opportunities have a better chance to survive and reproduce. The graph shows the asymmetric psychological value of gains and losses. A prominent feature is it is S-shaped, and the two curves are asymmetrical. The slope of the function changes abruptly at the reference point: the response to losses is stronger than the response to gains. 

Since investors are loss averse, we believe active risk management to control losses within their risk tolerance is an essential requirement of investment management. 

Asymmetry® of Losses

As much of the investment industry tells investors they should hold on on through losses, investors natural instinct to limit loss is mathematically correct. As investors are loss averse, losses are also asymmetric. 

As losses increase, more gain is necessary to recover from a loss. The larger the loss, the harder it becomes to get back to the starting point before the loss. This asymmetry of loss is in direct conflict with investors objectives and provides us with a mathematical basis for  active risk management and drawdown control. 

Asymmetry® is Our Objective

Our investment objective is positive Asymmetry® and we illustrate it with bar charts showing an asymmetric risk/return profile. The black bar is total return, the red bar is worst decline from prior peak (called drawdown).

Our Asymmetry® objective at the individual trade level is an asymmetric risk/reward, which is higher average profits than losses. When we achieve asymmetric risk/reward as a result of our risk management and focus on asymmetric risk/reward payoffs, the result of our Asymmetry® Investment Program is an asymmetric risk/return profile of less downside and potentially more upside. 

Who We Are

Shell Capital Management, LLC is a registered investment manager based in Knoxville, Tennessee. Founded by Mike Shell in 2004, Shell Capital Management. LLC is the investment manager of the Asymmetry® Managed Portfolios and Asymmetry® Global Tactical. Asymmetry® Global Tactical is an unconstrained, flexible, adaptable, go-anywhere global tactical strategy without the limitations of a fixed benchmark. 

 

Shell Capital takes asset management to a new level by actively managing risk and dynamically adapting to evolving markets. 

Shell Capital pursues absolute returns applying active risk management and unconstrained tactical trading decisions across a broad universe of global currency, bonds, stocks, and commodities.