Proactive, Tactical Strategy
We seek to provide downside protection in falling markets for our institutional clients. Our investment process leads to proactive rebalancing into asset classes that are more likely to outperform and away from asset classes that are decreasing in value. Moreover, we capitalize on tactical opportunities quickly. This benefits plans and portfolios looking to realize near-term opportunities that may otherwise be missed because decision makers meet less frequently.
Timeless Investment Philosophy
An investment philosophy must be timeless yet repeatable. While our investment process is not based on emotion, we believe investor behavior and sentiment provides us valuable data to utilize during the market life cycle. Through our expertise and market insights, we are able to capture the lion’s share of return without trying to time the precise market top or bottom.
Repeatable Investment Process
The repeatability of our investment process rests on proprietary quantitative models that identify where we are in the market cycle. The ability for the model to do this rests on two key tenets: 1) attempts to time the exact market bottom or top of each cycle are futile, and 2) return dispersions between asset class pairs are both wide and long-lived. Our models are designed to capitalize on the emotional patterns of other market participants. The models capture the majority of an unfolding cycle and await confirmation that an old cycle has ended before changing the portfolio position.
Learn more about how to invest in GAA at Balentine.