Equity Strategies

Ultimately, our investment objective on the equity side is to outperform the market while taking on less risk for the client. As Mark Twain stated, "history might not repeat, but it often rhymes." We believe in looking for trends that have proven historical tendencies and cycles within the market that are tried and true. We believe that the historical mean-reversion tendencies of certain ETFs, in addition to relative equity sector valuations, provide one of the best strategies for finding value within the market.

In addition to these specific ETFs, sector exchange traded funds provide both diversification as well as the opportunity to overweight attractive sectors through different equity market environments. Our research has recreated several of the most widely tracked indices and sectors of the market going back to 1984. We have found that by employing a strategy that purchases sectors trading at a "discount" to their historical valuation, an investor would typically outperform the broad index as valuations return to more "normal" levels. This methodology helps us to identify the sectors that we believe to be most attractive in the market and then use specific ETFs to overweight these sectors, industries, and sub-industries across the market.

We utilize this "premium/discount" model across all of our asset and sub-asset classes, buying them when we think the expected return is very good and selling them when the expected return has dropped to unattractive levels. We believe that this relative performance approach serves clients very well in the long run because, as long as markets trend upwards over time on a total return basis, a relative performance approach can generate substantially higher returns than a traditional buy and hold style or one where low absolute returns are acceptable.

If you have interest in our equity portfolio strategies, please contact us. We have a lot of historical data to share with you!