Strategies

 

Strategies Overview

Shamrock Symphony

An “endowment” style portfolio.  We believe the efficient frontier exists but very few investors are on it.  Although rooted in modern portfolio theory, our model construction process is not a purely quantitative solution.  Heuristics, judgement, and common sense are combined with an objective review of portfolio construction data and analytics.  This long-only strategy seeks better risk-adjusted returns than a 60/40 blend of stocks and bonds with a focus on transaction costs, taxes and turnover.

Key Benefits

  • Sophisticated portfolio construction with low turnover
  • Actively managed portfolio with broad diversification across equities, fixed income and liquid alternatives
  • Vertically diversified across asset classes within equities and fixed income
  • Horizontal rebalancing between equities and fixed income

Tactical Domestic ETF

The Tactical Domestic ETF strategy is designed to reduce volatility and downside capture while still delivering solid upside results.  This is an actively managed, concentrated sector and style rotation strategy.  Allocation decisions are based on quantitative and technical risk models with a focus on the following factors: market cycle, yield curve dynamics, behavioral biases, relative strength and momentum.

Key Benefits

  • Portfolio consists of the top 5 sector ETFs, the top style box ETFs, and broad US market exposure as determined, by relative strength and may be invested 0%-100% cash
  • Systematic risk management is rules-based and identifies elevated levels of risk present in the market and changes in long-term market trends
  • Attempts to minimize risk and maximize capital appreciation in periods of extreme market volatility
  • ETFs are low-cost, liquid, tax efficient and provide transparency of holdings

Multi-Asset Class Tactical ETF

The Multi-Asset Class Tactical Strategy is an actively managed portfolio comprised of ETFs that provides exposure to four major asset classes: U.S. Equities, International Equities, Fixed Income, and Commodities. Allocation decisions are made based on quantitative and technical risk models. The strategy has the ability to be fully invested or 100% defensive (cash or U.S. Treasuries) in each asset class.

Key Benefits

  • Broadly diversified tactical portfolio which may hold 0%-100% cash in each of the following sleeves depending on market conditions: U.S. Equities, International Equities, Fixed Income, and Commodities
  • Systematic risk management is rules-based and identifies elevated levels of risk present in the market and changes in long-term market trends
  • Attempts to minimize risk and maximize capital appreciation in periods of extreme market volatility
  • ETFs are low-cost, liquid, tax efficient and provide transparency of holdings

Tactical Fixed Income

The Tactical Fixed Income strategy is an actively managed portfolio of fixed income ETFs. The portfolio aims to generate above-average yields with strict risk controls by investing in those fixed income sectors believed to offer favorable risk-adjusted performance. The strategy seeks to objectively control the portfolio-level yield, modified duration and volatility.

Key Benefits

  • Quantitative global multi-asset fixed income solution comprised of 8-15 ETFs
  • Seeks to provide above-average market yields in a low interest rate environment
  • Greater potential for higher yield and diversification by investing in securities on a global basis
  • Prudent approach to protecting capital in high-risk markets by rotating into higher quality, shorter maturity bonds

Dividend Equity

The Dividend Equity strategy is an all cap actively managed portfolio of 35-45 individual equities. After employing a top-down approach to identify areas of the economy offering the most attractive opportunities, eligible holdings are screened based on a set of qualitative hurdles to determine the suitable list of investments. Fundamental research into company management, balance sheet, and opportunity for capital appreciation and dividend growth determine the portfolio’s holdings.

Key Benefits

  • All cap portfolio constructed of 35-45 individual equities including both domestic and foreign securities
  • Broad sector diversification and low turnover for tax efficiency
  • High quality companies with a history of strong dividend growth and the ability to operate profitably throughout the business cycle as economic growth changes

Growth Equity

The Growth Equity strategy is an individual equity strategy using both a quantitative and qualitative analysis to implement a repetitive, multi-step engineering approach to portfolio management. The process identifies high quality, reasonably valued companies poised to deliver earnings growth rates in excess of investor expectations and which have attractive and improving earnings quality. Portfolio risk is managed through a rigorous sell discipline which may include negative earnings surprises, deteriorating earnings quality and overvaluation.

Key Benefits

  • High quality portfolio of 40 individual securities
  • Highly disciplined investment process with a consistent methodology and portfolio characteristics
  • Positions selected based on an expectation of delivering an earnings growth rate in excess of investor expectations (earnings surprises), attractive and improving earnings quality, and reasonable valuations
  • Portfolio risk is controlled through rigorous sell discipline: negative earnings surprise, deteriorating earnings quality and overvaluation

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