Managing Risk While Seeking Reward
Making financial decisions amid today’s volatile economy can feel like a very bumpy ride. That’s why we developed our All Terrain Portfolioä, to provide you with a way to manage investment risk and minimize market volatility under nearly any type of market conditions.
Our All Terrain Portfolioä system allows us to design a customized portfolio for you that matches your risk tolerance and guards against potential losses while utilizing diversification and tactical asset allocation to produce the results you need. The goal is to help produce equity-like returns with bond-like volatility.
A cornerstone of the All Terrain Portfolioä is the use of low-cost exchange-traded funds (ETFs) to minimize expenses. ETFs also give investors new ways to access important alternative investments such as commodities, real estate, and currencies.
The All Terrain Portfolioä uses an academically based, quantitative approach in combination with broad diversification across five major asset classes:
To help minimize losses we employ a tactical discipline of selling individual asset classes and rotating those funds into cash when the asset class breaks through our five-way risk analysis system at the end of any trading week. We repurchase the asset class when its price rises back above the five-way criteria we use for risk management. This tactic is based on academic research into avoiding major portfolio drawdown through sell disciplines. Our proprietary process is informed by David Swensen’s books, Pioneering Portfolio Management, subtitled An Unconventional Approach to Institutional Investing and Unconventional Success, subtitled A Fundamental Approach to Personal Investing, and adds additional layers of risk analysis and is similar to that developed by Mebane Faber, co-author of The Ivy Portfolio.
The All Terrain Portfolioä features:
- Diversification across asset classes
- Global diversification
- Non-correlated assets
- Low-cost ETFs
- Tax-efficient investing
- Independent research
- A trend-following approach
- A quantitative approach
- A high level of attention to risk management
- Tactical asset allocation
- Alternative investments