The latest player drawing much attention in the burgeoning fintech market, JUX Capital offers discretionary investment management services, targeted at the average investor with a minimum investable amount of $1,000. JUX Capital’s investment service aims to combine the best parts of discretionary investment management with the best things technology can bring. Once aboard, clients are promised an unbeatable investment framework, together with the performance and transparency which modern technology makes possible.
The team at JUX Capital believe that a large proportion of people around the world who manage their own money would get better results if they let a professional do it for them. They would also avoid a lot of personal angst.
The firm has the evidence to prove the point. According to an annual study of investor behavior in America produced by Dalbar, a Boston-based analytics group, investors consistently do much worse than the market. In its most recent study covering last year, it found the average equity mutual fund investor underperformed the S&P500 — the main US share index — by a margin of 3.66%. In reality, the result was brutal. The market rose 1.38% over the year but the average investor lost 2.28%. They did equally badly in bonds and derivatives trading as well.
The results have been repeated throughout the decades, so there’s no question that last year’s figures can be written off as a momentary glitch: Dalbar has been doing its work for 30 years.
A solution to this problem, based on JUX Capital’s proposition is a discretionary investment service where client’s funds are invested in strong performing investment strategies by the firm’s investment professionals.
So far JUX Capital seems to be delivering on its promise of superior risk adjusted returns, since its current investment service launched in 2017.