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Tactical Growth
The Tactical Growth strategy is sub-advised by Broadmark Asset Management. (Please see your Financial Advisor for more information.) |
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Philosophy
The strategy capitalizes upon a persistent, recurring market inefficiency. This exploitable inefficiency is created by the relative return investment methodology employed to manage the majority of U.S. institutional equity funds.
The core beliefs of the strategy are:
- Portfolio risk and return can be enhanced with a strategy that is not required to be long only and fully invested
- Stock market risk can be addressed and a multi-factor model has successfully identified these opportunities over time
Broadmark seeks to outperform traditional strategies by:
- Increasing equity exposure when they think risks are low = Long ETFs
- Creating inverse exposure when they think risks are high = Inverse ETFs
- Taking a neutral position when they think no clear opportunities are apparent = Cash
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Strategy
Broadmark utilizes ETFs which provide market and sector exposure while diversifying the portfolio and reducing stock selection risk. ETFs reduce portfolio volatility and offer the highest liquidity possible with very low trading costs. The use of ETFs provides an optimal blend of alpha with low volatility for strong risk-adjusted returns. Individual equities are not used in the Forward Tactical Growth Strategy since the additional alpha generated through superior stock selection is also accompanied by a commensurate increase in portfolio volatility and risk.
Process
Broadmark’s models provide key determinates in assessing optimal stock market exposure including:
- Entry points
- Amount of exposure
- Type of exposure
- Exit points
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Tactical Growth Fact Sheet
For portfolio details and performance, click here. |
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