The combination of stretched valuations, rising inflation, and rising interest rates have placed pressure on traditional diversified portfolios in 2022.
The Diversified Growth strategy attempts to protect against drawdown and provide consistent returns by adding non-correlated return streams to our core global tactical model framework.
The model is rebalanced monthly.
Sharpe Ratio – the average return earned in excess of the risk-free rate. A higher Sharpe Ratio is better
Risk-Free Rate – represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time.
Sortino Ratio – another measure of risk that takes into account the downside deviation of the asset. A higher Sortino Ratio is better.
What is drawdown?
Drawdown is the measure from the highest high to the lowest low or peak to trough during a specific time period. It is an important measurement of risk. A larger drawdown requires a more significant increase in the security to recover.