A disciplined business cycle approach to sector allocation can help investors optimize their portfolio returns.
Needham, MA (PRWEB) October 01, 2014
The Dolan Capital Group, LLC (DCG) has launched a new sector rotation strategy that can go entirely to cash when its proprietary algorithm signals that it is prudent to do so. The Alpha Risk Solutions Sector Rotation Strategy is powered by a proprietary algorithm that has been embraced by the investment industry. DCG's Chief Information Officer, Matthew Lentini, served as a member of the team that developed this pioneering algorithm.
The Alpha Risk Solutions (ARS) Sector Rotation Strategy is designed to track an S&P Custom Index – the S&P/Dow Jones Alpha Risk Solutions Sector Rotation Index. Daily Index information can be accessed through the ticker symbol, ALPHARSK, on Bloomberg. The Index's website is http://www.alpharisksolutions.com. The strategy is available as a Separately Managed Account (SMA) on the Placemark platform.
According to Timothy Dolan, Managing Director, Dolan Capital Group, “Many advisors and investors are finding that yesterday’s traditional 'buy-and-hold' strategies may no longer be enough to meet today’s challenges.”
“Rigidly long-term, conservative investment approaches tend to ignore periods when more flexible actions are required,” he continued. To bring a more tactical, responsive approach to the marketplace, Mr. Dolan and ARS Chief Investment Officer Warren Mulhern introduced Alpha Risk Solutions Sector Rotation Strategy to the investment community this week.
ARS applies a proprietary rules-based engine that issues buy and sell signals across nine sector ETFs representing a comprehensive, flexible snapshot of America’s major economic sectors – from Financials and Consumer Discretionary to Materials and Technology.
“A disciplined business cycle approach to sector allocation can help investors optimize their portfolio returns,” Mr. Mulhern noted. “Quantitative analysis of past stock market returns has shown that sector exposure can be a significant factor in the variance of performance in individual stocks.”
The goal of Alpha Risk Solutions rules-based, algorithmic approach is to forecast over the near-term whether or not a given sector’s expected return is greater than the expected return of cash. When a “sell” signal is issued, the strategy will exit that sector. When fewer than four sectors are displaying “buy” signals, the strategy starts raising cash. When no sectors are displaying “buy” signals, the strategy will go 100% to cash.
About Dolan Capital Group, LLC
The Alpha Risk Solutions Sector Rotation Strategy is managed by the Investment Management Committee at Dolan Capital Group. Dolan Capital Group, LLC is a state of Massachusetts Registered Investment Advisor, investment product developer, manager, and distributor based in the Greater Boston area. Together the principals at Dolan Capital Group bring more than 90 years of investment industry experience to every assignment. Throughout their careers, the principals have had significant leadership roles in a variety of financial institutions. These experiences, complemented by a convincing track record of success in raising assets, provide each client with a strong foundation to meet and exceed their asset gathering and investment goals.
Dolan Capital Group, LLC is a State of Massachusetts Registered Investment Adviser. The information presented in the material is general in nature and may not address your investment objectives, financial situation or particular needs. Prior to making any investment decision, you should assess or seek advice from a professional regarding whether any particular transaction is relevant or appropriate to your individual circumstances. Although taken from reliable sources, Dolan Capital Group, LLC cannot guarantee the accuracy of the information received from third parties. Graphs, charts, and/or diagrams cannot, by themselves, be used to make investment decisions.