The manager seeks to achieve better risk adjusted return with lower volatility and exposure to risk in the market. This proven risk management strategy protects capital in bear markets and achieves reasonable performance in bull markets. Check back tested results here. While our quantitative analysis indicates that risk is increasing and the likelihood of a down turn grows, the portfolio takes a more conservative approach by gradually reducing its exposure to risk. By the same token, when our quantitative analysis indicates that it is prudent to take on risk the portfolio will increase its exposure to risk seeking higher returns. This balanced portfolio usually keeps 10% to 20% of its assets in money markets, 40% to 70% in equities and the balance in fixed income. Consider that at the time of high risk, the equity allocation can drop to 0%. Although the inception date of the portfolio is January 2020, the portfolio manager has been successfully implementing and perfecting the same investment process since the internet bubble (2003).
The portfolio manager seeks to outperform S&P500 Index by investing 100% of the assets in stocks in the S&P500 and Nasdaq. The positions in the portfolio are rotated in sync with market expectations of economic growth and the economic cycle. At the time of increasing risk, the portfolio manager can reduce risk by allocating capital to cash or money markets. Inception 01/01/20.