In an attempt to maximize returns, the portfolio managers will increase equity exposure and use leveraging techniques when they sense “top-down” low risk environments.
In an attempt to protect capital, they may move all or a portion of equity exposure to short-term fixed income instruments or cash equivalents when risk in the stock market is deemed high.
If you’re looking for a tactical money manager strategy to manage risk in your portfolio, the Churchill Maximum Growth Strategy is one option to consider. To quickly compare Churchill to other tactical money managers and to learn more about the approach, click here.1
Churchill Maximum Growth aims to achieve superior returns by adding exposure to equities – and using leveraging techniques – when they think low-risk opportunities exist.
If there is a sense that “top-down” risk in the markets is low, the portfolio managers may purchase investments through use of margin (for accounts with margin agreements), or utilize other investments such as ETFs, which engage in leveraged and margin trading. Depending on market risk, the strategy may utilize ETFs and mutual funds, both of which may purchase foreign securities and stocks on foreign exchanges.1
As the “impact of a bear market on a stock market portfolio can be devastating to individual investors,” Churchill may vary the percentage invested in the stock market based on their risk assessments of the market.2
When risk is perceived as high, they may move all or a portion of assets into short-term fixed income instruments, cash equivalents, or in rare cases, apply shorting techniques.
Churchill’s Investment Management team meets weekly to determine the appropriate level of equities for their clients. To do this, they gauge risk by assessing fundamental, technical, and sentiment indicators.
At the same time, Churchill attempts to identify strong competitive companies that typically exhibit strong characteristics for sustainable revenue and earnings growth.
They repeat that process regularly, so as to ensure the portfolio allocation is aligned with their views on the market.1
To learn more about the Churchill Maximum Growth Strategy, or how the strategy compares to other money manager strategies with a similar objective, call one of our Wealth Managers at 1-800-541-7774. We can provide you with a more detailed analysis and answer your questions.
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Source:
1 Informais / PSN Enterprise
2 Churchill Management Group
WrapManager is not affiliated with Churchill Management Group, and it has not approved for use nor entered into contract with Churchill Management Group. Data is being presented for informational and comparison purposes only.
Strategy descriptions listed represent a brief outline of the portfolio’s objective. There is no guarantee that any manager or product will be successful in achieving the objective described. The strategy used by the money manager listed is not suitable for all investors. This material does not represent a personalized recommendation and does not reflect individual investor’s risk and return goals nor does it serve as the receipt of, or a substitute for, personalized advice from WrapManager, Inc. or any other investment professional.
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