A rules-based strategy designed to exploit market inefficiencies in a disciplined systematic manner.
Seeks to outperform the market capitalization-weighted return of the S&P 500 index with less downside risk.
Our process enforces discipline by eliminating emotion:
- Equal-weight the S&P 100 Index to avoid over concentration in stocks, sectors and styles^
- Trim securities to 1% if they appreciate over 50% during the quarter
- Remove securities that fall 30% or more during the quarter
- Rebalance quarterly to realign holdings to 1% weights‡
*There is no guarantee that this objective will be achieved.
^ SPDRs may be used to equalize cash since they are highly correlated to the S&P 500 cap-weighted Index. They are used as equity proxies for the Corporate Leaders 100 strategy because they are more closely correlated to the strategy, and provide higher liquidity, than the S&P 100 cap-weighted SPDR.
‡ Rebalancing can result in capital gains or losses.
Past performance does not guarantee future results. There is no guarantee that any forecasts or opinions in this material will be realized. Manager commentary is for informational purposes only and does not constitute investment advice and is not a recommendation to purchase or sell any of the securities referenced.