Tactical Equity Opportunities (WRAP)

Strategy Objective

The Tactical Equity Opportunities (WRAP) Strategy seeks growth through capital appreciation primarily from the tactical and unconstrained investment in risk-appropriate individual equities. As with all L&S tactical long/cash strategies, we protect capital in riskier markets by moving from equities up to 100% cash. Available only to investors with accounts on a WRAP platform.

The Tactical Equity Opportunities (WRAP) Strategy consists of a blend of 30-40 growth stocks. The primary focus is on large-cap U.S. equities, but it may also invest in foreign securities using American Depository Receipts (“ADRs”). The strategy may also include dividend-paying stocks and/or alternatives such as Master Limited Partnerships (MLPs) and Real Estate Investment Trusts (REITs). Equities are chosen based on economic cycle, market sector, and fundamentals, with an emphasis on above-average earnings, revenue, and cash flow projections for the next 12 months.

Core Client

The core client for this strategy would be a risk-tolerant client seeking primarily capital growth with a secondary emphasis on income who desires to invest from a WRAP platform.

Strategy Highlights

  • WRAP only. For investors with WRAP accounts.
  • Tactical all-cap core, domestic and international (ADRs)
  • Invests primarily in individual equities, with a primary focus on growth stocks and a secondary focus on securities with solid dividend yields
  • May seek income from alternative investments such as MLPs, REITs, or commodity ETFs when appropriate
  • Can be concentrated, including up to 100% cash (Treasury bills or U.S. government money market funds)

Key Benefits of All L&S Strategies

  • Active long/cash allocation. We aim to maximize returns in low-risk markets by investing in what we believe to be promising equities and preserve capital in riskier climates by moving at any time up to 100% cash.
  • Disciplined, data-driven risk management. We make tactical decisions based on rigorous economic data tracking and top-down macroeconomic analysis.
  • Unconstrained approach. We don’t limit ourselves to a single style box or market capitalization. We’re free to pursue what we believe to be the best opportunities across the entire stock universe.
  • NO leverage, options, shorting, or currency hedging, reducing complexity and fat-tail risk.
  • Less volatility and downside risk. Designed in an effort to reduce volatility and downside risk in comparison to traditional buy-and-hold strategies.