• Overexposed to U.S. Large Caps? Let Simple Math Guide the Rebalance

    Article: Overexposed to U.S. Large Caps? thumbnail

    The steady, upward trajectory of U.S. large-cap equities over the past decade has left many portfolios overexposed to the asset class. But rebalancing presents a conundrum: How can advisors decrease allocations to one of equity markets’ least-risky segments—and capitalize on more attractive valuations elsewhere—without upsetting a portfolio’s overall risk profile?

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  • Trend Following Isn’t the Only Managed Futures Strategy

    Trend Following Isn

    Part of building a resilient portfolio is incorporating true diversifiers, such as managed futures, which offer little to no correlation to the broad markets. However, trend following isn’t the only managed futures strategy—there is also a niche of managed futures funds employing counter-trend trading models.

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  • Alternatives Demystified:
    A Simple Framework for Preparing for a Bear Market


    Ten years after the financial crisis—followed by a record-long bull market—investment advice is at a critical turning point: from participation to preservation. Alternatives can play a valuable role in hedging equity market risk but with so many different strategies—many of which are unfamiliar to clients—advisors need a framework for explaining the various strategies and their role.

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  • Stay Sharpe
    By Looking at Sortino

    One common investment evaluation statistic is that of the well-known Sharpe ratio. This ratio measures an investment’s risk-adjusted return by taking the investment return less the risk-free rate and dividing that by its standard deviation. One thing hidden in the denominator of that equation (standard deviation) is that all deviation is not created equal.

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  • Man vs. Machine:
    An Introduction to Quantitative Investing

    Over the years, quantitative investing has become a popularly debated topic in our industry, causing many investors to choose a corner in the man vs. machine ring. However, we challenge that one-sided mindset as we believe there is a fit for quantitatively managed investments in every portfolio.

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