Tactical Alpha Model
Summary
The Tactical Alpha Model uses a rules-based active management portfolio strategy that shifts the percentage of assets held in various equities to take advantage of pricing anomalies caused by market volatility. The investment objective is to outperform the S&P 500 on a risk-adjusted basis by utilizing a basket of equities to provide broad diversification and lower the standard deviation of the portfolio to the benchmark. The current asset allocation is 85/15 (Equities/Cash).
Methodology
The Tactical Alpha Model was developed by selecting equities of solid companies with strong momentum and implementing a rules-based stop-loss strategy to limit downside risk. The cash portion of the portfolio is always invested in a high-yielding institutional money market fund.