Welcome

ANOVA Management’s mission is to provide investors with an investment program that is less risky than the S&P 500 Index and does not forfeit return performance. Based in Texas, New York and Florida, we specialize in working with investors who recognize that risk management and a disciplined process are necessary components of any successful investment strategy.

In 2021 the book, Moving Beyond Modern Portfolio Theory: It’s About Time!, was published by Lukomnik and Hawley to address what they call “the MPT paradox”: in which they point out that Markowitz’s MPT diversification works only to mitigate idiosyncratic risks, which are specific to certain assets or industry sectors—and does nothing to mitigate systematic risks, which could collapse the entire financial system.

Our Philosophy

ANOVA Management developed its trading program Efficient Market Portfolio Plus (EMP+) to address these specific concerns for equity investors. EMP+, like many other programs, addresses the idiosyncratic risk from specific assets by investing in a broad sampling of companies. It avoids the systematic risk from specific industry sectors by using its proprietary algorithms to identify and avoid investing in industry sectors that are expected to underperform the broader market. Finally, it has the ability to avoid systemic risk without giving up performance, i.e., it can cut the risk of investing in half without expecting to forfeit returns. It does this by “hedging” its portfolio of long assets identified by the algorithm as likely to overperform with a portfolio of short assets that the algorithm identifies as likely to underperform the broader market. In this way our strategy “hedges” much of the market’s beta or systemic risk while benefitting from the positive “alpha” (overperformance) generated by the sectors held in the long portfolio and benefitting from the negative “alpha” (underperformance) generated by the sectors held in the short portfolio.

Strategies

Our program and strategies – EMP+ is a diversified, actively managed investment program designed to generate better returns than the S&P 500 Index with less risk. The program has developed into two strategies.

EMP A Financial Strategies

EMP A is recommended for the aggressive investor willing to accept the risk of S&P-like drawdowns (systematic risk) in the quest for better than market returns. EMP A is expected to be about as risky as the overall market and generate higher returns under most conditions. Suitable investors will typically be in the process of building their retirement account. As part of their strategy, they often plan on additional contributions regularly for the next ten years or more.

EMP B Financial Strategies

EMP B is recommended for conservative investors who prefer less volatility (reduced systematic risk) in their retirement account but are unwilling to sacrifice returns for safety. EMP B is expected to be about half as risky as the overall market, allowing it to outperform in market declines and causing it to modestly underperform in rising markets. Suitable investors typically expect to retire within ten years and wish to avoid a significant drawdown in their retirement savings.

About Us

ANOVA management is a team of professional traders who have joined together to help investors achieve financial independence.  We have developed the Efficient Market Portfolio Plus (EMP+) to provide investors with a logical alternative to traditional stock picking methodologies or the often recommended “Buy and Hold” strategy.  EMP+ strategies are actively managed to avoid holding asset classes that underperform the S&P 500 Index (S&P).  This expected result is portfolios that are less volatile (risky) and generate higher returns than the S&P.

Our Team

Wayne Penello – Wayne Penello is the Founder, President, and Chief Investment Officer of ANOVA Management, Inc. He has more than 40 years of experience trading, managing risk, and investing. Wayne developed the Performance Risk Management System (US Patent 7,822,670 B2) to give his corporate clients a disciplined framework to hedge their commodity price risk. The clients of the consultancy he founded, Risked Revenue Energy Associates, were paid more than $13 billion for their hedge activities. Wayne explains how they achieved these results in the book he co-authored, Risk is an Asset, published by ForbesBooks. Wayne has a Master’s degree in Marine Environmental Sciences from the State University of New York at Stonybrook. He withdrew from their Ph. D. program with only a language requirement to complete, to become a floor trader on the New York Mercantile Exchange (NYMEX). During his almost 10 years as an independent trader, Wayne served the NYMEX as the Ring Chairman for Options Trading and headed both the Settlement and Floor Committees. Wayne left the NYMEX to advise, trade and manage commodity price risk for major firms in the United States and Europe. Wayne actively supports several community charities, including ARTS for Rural Texas, The Boys and Girls Club of Champion Valley, the Fayette County Community Foundation, MD Andersen Cancer Research, the Round Top Festival Institute, and the Turtle Wing Foundation. In his free time, he enjoys golfing with his wife, Leslie, hunting, fishing, and managing cattle on his ranch in Texas.

John DiPlacido – John Diplacido is the Director of Investor Development at ANOVA Management. He has owned and managed one of the largest Independent Energy Brokerage Companies on the New York Mercantile Exchange for 25 years. He has primarily utilized his trading and investment skills to benefit his clients in commodities and, more recently, the renewable energy space. As a result of his market knowledge, he has been interviewed and quoted in various publications, including the NY Times, Wall Street Journal, LA Times, Houston Chronicle, Bloomberg, Fox Business News, CNBC, and CNBC Asia, amongst others. He was selected as the Best Small Business Owner in New York by the Republican National Congressional Committee in 2001. That same year, he received a special award from the above-said committee in Washington, D.C. John is very active in his community. He volunteers to teach and mentor children and teenagers in sports and finances as his hobby.

Robert (Bob) Coakley – Bob Coakley brings over 35 years of experience in commodity and stock trading to ANOVA Management. He served as Chairman and CEO of COED Media Group, where he was the original angel investor and later took over day-to-day operations. Bob was a member of the New York Mercantile Exchange for over 20 years, where he owned and operated Win Futures Inc., a commodity-trading firm with 100 employees. He was elected to the Board of Directors twice for a total of 6 years and was integral in reopening the Exchange after the 9/11 attack. He held various leadership positions, including Chairman of the Floor and Settlement committees, and served on dozens of committees. He earned a bachelor's degree in accounting and finance from Fordham University, was a four-year letterman, and was an All-American in swimming and water polo. He has been on the national board of Swim Across America for 35 years, where he founded the Hudson River and Florida Keys events and served as Treasurer for 32 years. He has contributed significantly to SAA's success, helping to raise over $100 million for cancer research. He and his wife, Lisa, reside in Florida. Bob has his 100-ton Master Captain's License and PADI Master Scuba Diver Trainer Instructors rating. He enjoys fishing, diving, and underwater photography in his free time.

"To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insights or inside information. What's needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework."
Warren Buffett