STRATEGIC ASSET ALLOCATION: Our Macro Economic Strategic Allocation (MESA) model first evaluates factors based on broad economic data such as Industrial Production, PMI and GDP Forecast. MESA combines these factors along with relative value comparisons and trend statistics to guide our Investment Team. The goal is to have a tool that assists the general asset allocation decision of stocks versus bonds and between subclasses within these asset classes.
SECURITY SELECTION: Bottom up quantitative modeling based on fundamentals, valuations, risk statistics and trend measures is the foundation of the security selection process. Portfolio Managers rely on these tools to assist with the qualitative decision making and implementation.
TACTICAL RISK MANAGEMENT: Tactical portfolio management systems may be implemented to further manage risk as appropriate. Market based Risk and Trend signals allow for a systematic process to reduce or eliminate parts of strategic allocations during times of market stress. The use of these tools changes the risk profile of strategic allocations in client accounts and are considered in the Portfolio Design process when modeling a plan and setting expectations for clients.