Overview
GPLS is an investment management firm, founded in 2021, that takes a systematic research-driven
approach to portfolio management. GPLS commenced operations in January 2021 and is registered
under the Investment Advisers Act of 1940 and regulated by the Securities and Exchange
Commission.
The firm was founded by Garrison Leach, who leads the firm as our Chairman and Chief Executive
Officer. Since our founding, we have focused on the investment counseling business. The firm is
located in one office in Aledo, Texas.
The firm is not affiliated with a brokerage firm.
Advisory Service
GPLS specializes in quantitative investment analysis, utilizing proprietary models to form
investment views that are carried out through a disciplined and systematic process. GPLS provides
investment advice on a variety of securities and instruments in accordance with agreed upon
investment objectives and strategies. Under certain circumstances, GPLS tailors advisory services
to the individual needs or requirements of a Client.
Multi-Strategy Product
GPLS’s primary investment product is our Multi-Strategy Product, which offers total return
exposure by combining subsequent GPLS strategies in an optimal manner. This strategy is
available directly to both institutions and individuals via advisory and/or sub-advisory
arrangements.
The Multi-Strategy Product implements a combination of GPLS strategies in a way that is
focused on maximizing risk-adjusted returns. In its implementation, the base multi-strategy
primarily utilizes large and highly liquid exchange traded funds. However, because GPLS is
able to customize component strategies as described below, a broad variety of instruments may
be used in implementation. Varying degrees of leverage can be taken in the implementation of
the Multi-Strategy Product, to be determined in accordance with Client preference and
suitability.
Risk Parity Product
GPLS offers total return exposure through its Risk Parity Product, which is available directly
to both institutions and individuals via advisory and/or sub-advisory arrangements.
The Risk Parity Product implements a strategy that is designed to produce consistent and
uncorrelated returns. The Strategy is focused on achieving an optimal strategic asset allocation
by building a portfolio based on risk allocations rather than capital allocations. Instead of
generating returns through active trading, this strategy seeks to collect the returns from holding
assets that naturally diversify each other based on their fundamental relationship to changing
growth and inflation environments. The strategy allocates risk exposure with the objective of
creating a portfolio that is balanced to perform across shifts in the economic environment. The
base strategy asset classes include domestic equities and bonds. However, GPLS is able to
custom tailor the strategy to include other asset classes such as inflation-linked bonds,
commodities, corporate credit, and/or other asset classes. The base strategy utilizes exclusively
exchange traded funds in its implementation. This strategy can use varying amounts of
leverage, to be determined in accordance with Client preference and suitability.
Volatility Risk Premium Product
GPLS offers absolute return exposure through our Volatility Risk Premium Product, which is
available directly to both institutions and individuals via advisory and/or sub-advisory
arrangements.
The Volatility Risk Premium Product implements a strategy that seeks to generate returns by
exploiting investors tendency to overestimate the probability of significant losses. In its
implementation, this strategy systematically buys and sells exposure to S&P 500 volatility
through various means including, but not limited to, exchange traded funds and futures
contracts. This strategy is designed to provide beta neutral positive returns with moderate risk
over the long run and low correlation to many traditional and alternative return sources. Due
to embedded leverage within the various instruments used in implementation, the strategy is
delivered on a de-levered basis by default. However, the strategy can be implemented with
varying degrees of leverage, to be determined in accordance with Client preference and
suitability.
Large Capitalization Equity Product
GPLS offers traditional equity exposure through our Large Capitalization Equity Product,
which is available directly to both institutions and individuals via advisory and/or sub-advisory
arrangements.
The Large Capitalization Equity Product implements a strategy that is focused on domestically
traded common stocks with large market capitalizations and high daily trading volumes. We
invest in the stocks of high quality, financially sound industry leaders that have an expanding
global presence. We maintain a medium to long term investment perspective, which generally
results in low portfolio turnover and is typically tax efficient for taxable investors. This strategy
is quantitative in nature and is based on momentum factors. This strategy can use varying
amounts of leverage, to be determined in accordance with Client preference and suitability.
Sector Rotation Product
GPLS offers traditional equity exposure through our Sector Rotation Product, which is
available directly to both institutions and individuals via advisory and/or sub-advisory
arrangements.
The Sector Rotation Product implements a strategy that invests in domestic equity sectors
which have exhibited recent relative performance strength. In evaluating a sector’s relative
strength, the strategy measures the performance of each sector against the performance of the
other sectors in the strategy’s investing universe. The Fund will rotate assets into, and out of,
sectors on
a periodic basis, and the strategy’s portfolio may therefore be traded frequently.
During certain market conditions, notably those which the strategy identifies to be relatively
unattractive for equities, the strategy may take positions that focus on bonds and fixed income
securities as an alternative to equities in an attempt to preserve capital. The level of hedging,
as well as any leverage applied to the strategy, is subject to Client preference and suitability.
Balanced Portfolios
GPLS will also construct balanced portfolios for our institutional and individual Clients. These
balanced portfolios can combine the firm’s strategies in proportions tailored to Client
requirements or can be wholly customized to meet the Client’s needs.
Portfolio Management Services
GPLS manages separate portfolios for institutions and individuals on an account-by-account basis,
taking into consideration a Client’s financial resources, investment objectives, and needs. The firm
creates an Investment Policy Statement for each Client, which outlines the Client’s current
situation (income, tax levels, and risk tolerance levels) and then constructs a plan to aid in the
selection of a portfolio that matches each Client's specific situation.
GPLS evaluates the current investments of each Client with respect to their risk tolerance levels
and time horizon. GPLS will request discretionary authority from Clients in order to select
securities and execute transactions without permission from the Client prior to each transaction.
Risk tolerance levels are documented in the Investment Policy Statement, which is given to each
Client.
GPLS seeks to provide that investment decisions are made in accordance with the fiduciary duties
owed to its accounts and without consideration of GPLS’s economic, investment or other financial
interests. To meet its fiduciary obligations, GPLS attempts to avoid, among other things,
investment or trading practices that systematically advantage or disadvantage certain Client
portfolios, and accordingly, GPLS’s policy is to seek fair and equitable allocation of investment
opportunities/transactions among its Clients to avoid favoring one Client over another over time.
It is GPLS’s policy to allocate investment opportunities and transactions it identifies as being
appropriate and prudent among its Clients on a fair and equitable basis over time.
Subadvisor Services
GPLS may also act as a subadviser to advisers unaffiliated with GPLS. These third-party advisers
would outsource portfolio management services to GPLS. This relationship will be memorialized
in each contact between GPLS and the third-party adviser.
Services Limited to Specific Types of Investments
GPLS generally limits its investment advice to fixed income securities, equities, ETFs (including
ETFs in the gold and precious metal sectors), and commodities. Under certain circumstances,
GPLS may use other securities as well to help diversify a portfolio or implement certain strategies
when applicable.
Client Tailored Services and Client Imposed Restrictions
GPLS may tailor a program for each individual Client. This will include an interview session to
get to know the Client’s specific needs and requirements as well as a plan that will be executed by
GPLS on behalf of the Client. GPLS may use model allocations together with a specific set of
recommendations for each Client based on their personal restrictions, needs, and targets. The firm
may manage accounts subject to Client instructions that prohibit holding certain securities or types
of securities or that limit weightings in individual sectors, industries, or securities.
GPLS prefers not to be constrained by Client instructions that prohibit holding certain securities.
We believe that the ability to select from the widest range of investments that are consistent with
our strategy results in higher returns over time. However, the firm can manage accounts subject to
instructions that specify various exclusions or that limit weightings in individual sectors,
industries, or securities. We will accept new accounts subject to these types of instructions as long
as we do not view the proposed directives as overly restrictive or too difficult or impossible to
implement and monitor.
Fiduciary Acknowledgement
GPLS may provide investment advice regarding retirement plan accounts or individual retirement
accounts. In doing so, GPLS is a fiduciary within the meaning of Title I of the Employee
Retirement Income Security Act and/or the Internal Revenue Code, as applicable, which are laws
governing retirement accounts. The way GPLS makes money creates some conflicts with Client
interests, so we operate under a special rule that requires us to act in the Client’s best interest and
not put our interest ahead of that of the Client. Under this special rule’s provisions, we must:
• Meet a professional standard of care when making investment recommendations (give
prudent advice);
• Never put our financial interests ahead of the Client’s when making recommendations
(give loyal advice);
• Avoid misleading statements about conflicts of interest, fees, and investments;
• Follow policies and procedures designed to ensure that we give advice that is in the Client’s
best interest;
• Charge no more than is reasonable for our services; and
• Give the Client basic information about conflicts of interest.
Wrap Fee Programs
A wrap fee program is an investment program where the investor pays one stated fee that includes
management fees, transaction costs, fund expenses, and other administrative fees. GPLS does not
participate in any wrap fee programs.
Assets Under Management
As of December 31, 2023, GPLS has approximately $34
5,000 in assets under management
that are managed on a discretionary basis and $0 in assets under management that are managed
on a non-discretionary basis.