Tactical Investment Strategies

Tactical Growth Limit-Loss

The stock market is the best way to build wealth – but it could also put portfolios and financial goals at risk. In order to reduce the risk of significant downside, we apply a fundamental, forward-looking approach to tactical asset management.

The objective of the Tactical Growth Limit-Loss strategy is to provide U.S. market exposure and participation in rising markets while heavily emphasizing risk management in down markets. The portfolio can include ETF or index fund investments in one or multiple asset classes including U.S. large-cap equity, fixed income, and/or cash equivalents. The strategy allocates up to 100% of assets to equities (risk-on allocation) or to fixed-income or cash equivalents (risk-off), primarily based on the manager’s proprietary model’s 6-month return forecast for the S&P 500 index, also taking into account short-term risk and other fundamentals. The benchmark is the Morningstar Tactical Allocation index.

Tactical 2xGrowth Limit-Loss

The stock market is the best way to build wealth – but it could also put portfolios and financial goals at risk. In order to reduce the risk of significant downside, we apply a fundamental, forward-looking approach to tactical asset management.

The objective of the Tactical 2xGrowth Limit-Loss strategy is to provide U.S. market exposure and participation in rising markets, while heavily emphasizing risk management in down markets. The portfolio can include ETF or index fund investments in one or multiple asset classes including U.S. large-cap equity, fixed income, commodities (up to 40%), and/or cash equivalents. The strategy allocates to equities (risk-on allocation) or to fixed-income or cash equivalents (risk-off), primarily based on the manager’s proprietary model’s 6-month return forecast for the S&P 500 index, also taking into account short-term risk and other fundamentals. The strategy may, at times, utilize up to 2x leverage (200% allocation) to equities, when the forecast for the S&P 500 is especially strong. The benchmark is the S&P 500 index.

Tactical Income

The objective of the strategy is to generate income from exposures to U.S. fixed income markets, and total return from participation in various fixed income markets while heavily emphasizing managing downside risk. The portfolio can include ETF or index fund investments in Treasuries, corporate bonds, cash equivalents, and high-yield bonds and loans. A set of proprietary models is utilized by the Manager to evaluate attractiveness of risk-return for each asset class. Each model uses several indicators that historically proved to identify or lead changes in asset class risk-return trends. The benchmark is Barclays US Aggregate bond index.

Important Notices

Advisory services are offered through Model Capital Management LLC, an SEC-registered investment advisor. See other important disclosures.

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