Model Capital Management and Sowell Management Services have launched the ‘US Tactical Enhanced’ tactical investment portfolio.
The strategy is delivered on Sowell’s asset management platform, and is now available to most investors as a separately-managed account (SMA).
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An increasing number of RIAs are looking for tactical investment options to complement their traditional strategic asset allocation approach.
As opposed to buy-and-hold, a tactical strategy changes the stock-bond mix depending on the near-term (typically 3-6 months) expected return outlook, attempting to avoid major market sell-offs.
Model Capital’s tactical strategies are a result of its systematic forecasting of equity index returns based on fundamental-type factors. Its statistical forecasting model (the PAR Model) includes as many as 22 factors in the complete model.
The new Tactical Enhanced strategy is actively managed by Model Capital, which is expected to enhance its P&L profile.
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By GlobalDataFraank Donovan, vice president of Model Capital Management, said: "I am very pleased to sub-advise for Sowell Management’s investors, and to be able to utilize Sowell’s cutting-edge asset management platform. We firmly believe tactical investing to be a very effective way to add positive return over an index, and we are excited to be able to offer this strategy to investors. The portfolio is actively managed, and will benefit from our team’s deep risk management experience."
Bill Sowell, president of Sowell Management, said: "We have been using Model Capital’s strategies to offer tactical asset portfolios (TAPs) to our investors for some time. Using our turnkey asset management platform (TAMP) to deliver a managed tactical SMA strategy to RIAs and our B/D relationships and their investors was a logical next step. We knew it would be a great fit to our objective of offering unique, high-value strategies to the advisor and investor community."
