It turns out that breeding the individual hens with the highest egg yields created hyper-aggressive hens which, when placed in a population of other high-yielding but hyper-aggressive hens, peck each other to death, which in turn causes total egg yields to drop.
However, groups of hens with high aggregate yields contain the right mix of high yielding hens and passive hens, such that when high-yielding groups were inter-bred, the resulting new groups contained even more concentrated versions of both traits, with incredible practical results. Notably, within 6 generations of group breeding, eggs produced per dozen hens rose from 91 to 237, for a 260% improvement.
Our approach selects baskets of assets which work well together to deliver strong stable returns. Importantly, this does not mean that portfolios contain the strongest individual assets; if strong assets possess qualities (correlation or volatility traits) that do not complement the other members of the group, they are not selected. This is critically important and is the conceptual root of our strategy’s outsized return/risk ratio.
To see how this applies to your portfolio see here: