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 an absolute basis by utilizing a basket of equities and/or ETFs to provide broad diversification. The model usually holds a small percentage of cash routinely invested in short-term government treasury funds.
Methodology
Tactical investing is an active portfolio management strategy that involves adjusting asset allocations based on anticipated market trends or economic conditions. The primary goal of tactical investing is to enhance portfolio returns, improve risk-reward characteristics, and preserve capital by taking advantage of short-term market opportunities. The Tactical Alpha Model methodology focuses on selecting equities from solid companies with strong momentum and implementing a rules-based stop-loss strategy to limit downside risk. Additionally, the cash portion of the portfolio is consistently invested in a high-yield institutional money market fund.