Global Adaptive Capital Growth Managed Account

A global allocation portfolio informed by views on extreme market movements

Jump to a section

Overview

Client Commitment

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 80% equities and 20% fixed income, based on a market-neutral allocation.

Why Invest in the Portfolio

    Core Solution

  1. 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.
  2. Looking Past the Average

  3. 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.
  4. Adaptive Allocation

  5. 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.

Performance

RETURNS

(As of 12/31/2018)
Past performance cannot guarantee future results. Investing involves risk, including the possible loss of principal and fluctuation of value. Returns greater than one year are annualized. Returns are expressed in U.S. dollars. All returns reflect the reinvestment of dividends and other earnings.
*Pure gross performance results do not reflect the deduction of any trading costs, fees or expenses and returns will be reduced by such advisory fee and other contractual expenses as described in the individual contract and Form ADV Part 2A. Pure gross returns are supplemental to net returns.
Net returns are calculated by subtracting the highest applicable Managed Account fee (3.00% annually, or 0.25% monthly) from the pure gross composite return. The Managed Account fee includes all charges for trading costs, portfolio management, custody and other administrative fees. Actual fees may vary depending on, among other things, the applicable fee schedule and portfolio size. The fees are available on request and may be found in Form ADV Part 2A.

Characteristics

Please see the Fact Sheet for Managed Account characteristics.

Commentary & Literature

Literature