Since the 1960s, the inversion of the Treasury curve has preceded every U.S. recession, but that doesn’t mean the latest inversion spells an imminent downturn.
Global Adaptive Capital Allocation Managed Account
A global allocation portfolio informed by views on extreme market movements
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The Strategy is designed to actively adapt based on forward-looking views on extreme market movements, both positive and negative, with the goal of minimizing the risk of significant loss in a major downturn while participating in the growth potential of capital markets. The Portfolio consists of 30% equities and 70% fixed income based on a market-neutral allocation.
Why Invest in the Portfolio
- With diversification across global assets and a philosophy concentrated on avoiding large drawdowns while participating in upward moving markets, the Portfolio may present an attractive option for an investor’s core portfolio.
- Market environments are constantly changing, and no two time periods will ever deliver the same experience. We embrace this concept and as such, do not use average risk/return measures in our process; rather, our major focus is on the dominant role played by tail risks in compounding returns. Such returns are enhanced most by mitigation of tail losses and participation of tail gains each period of time.
- We monitor both extreme positive and negative movements known as expected tail gain (ETG) and expected tail loss (ETL). Portfolio construction is driven by the ratio of ETG to ETL while targeting a desired level of portfolio risk with the goal of maximizing terminal value to investors.
Looking Past the Average
Please see the Fact Sheet for Managed Account performance information.