Disciplined and Systematic
ACM deploys a proprietary rebalancing methodology for its target allocations that assures selling in a rising market and buying when the market declines.
What are the key objectives for this strategy?
To Participate but Protect or strive to achieve asymmetric risk/returns with more participation in upside equity performance while limiting the downside over the long-term. Proprietary rebalancing rules assure that asset weightings are increasing in a declining market and decreasing when it rises. The strategy invests in the most liquid assets that are negatively correlated for greater diversification benefits. Also, it is quite efficient for trading purposes and is generally not capacity constrained.
Current Offerings
We offer strategies that benefit from our experience in active rebalancing and the use of derivatives for risk management.
ACM establishes long positions in the S&P 500, Russell 1000, S&P Mid Cap and Russell 2000 with a current target equity exposure of 70%. It creates hedges by utilizing VIX-linked Investments (15%) and Treasuries (15%). These target allocations are actively rebalanced according to predetermined rules.
ACM offers Dynamic Rebalancing to facilitate stricter adherence to target allocations while delivering an incremental return associated with harvesting short-term volatility. Realized gains from market gyrations can be harvested by rebalancing more frequently without disrupting the underlying instruments.