From the earliest days of our firm,
SAM clients have asked us about the integration of quantitative
tools into our portfolios.
That's exactly what Tactical Select does.
It takes the robust, fundamental
analysis done by our investment team and marries
that with the immense amounts of quantitative data
and analytics.
The end result is an investment strategy
that may provide clients the best of
both worlds.
Solid,
qualitative-driven ideas optimize with
strong quantitative risk management.
Tactical investing is an active approach that seeks
to be in the right investments at the right time.
It isn't enough to just own quality investments,
although that's certainly a starting point.
But with the right kind of tactical investing,
we seek to own certain assets at times when they can
achieve excellent returns relative to the risk we're taking.
Now,
investing would be easy if nothing ever changed.
But we know the market change
changes,
sometimes rapidly and in unexpected ways.
And so another part of tactical investing is being nimble.
We will change when the market changes.
That means taking advantage of new opportunities,
but also shielding our clients from
volatility when it's prudent to do so.
When we launched this strategy,
we did extensive back-tests to determine how overlaying quantitative
models would impact the returns produced from investing in our top,
fundamentally-sourced investments.
The results were excellent,
and we found that it had strong performance in the market.
We have a lot of impact in both bull and
bear markets in both bull and bear markets.
But as we've told clients many times,
we believe investors should take any back-tests with a grain of salt.
What really matters are the real-world results.
That's why we're so pleased to report
that since its inception in 2023,
the performance for Tactical Select has been great,
even surpassing the expectations we
had after the successful back-tests.
Thus,
it's not a surprise that the strategy has
quickly grown to be one of our largest at SAM.
This is not a strategy for investors who
prefer to buy and hold no matter what.
Instead,
Tactical Select is likely to continue to be an active strategy,
particularly when there are material
changes occurring in the market and economy.
If you like the idea of a strategy
that changes when the market changes,
your goals include a blend of capital growth,
preservation,
and income generation,
and you're comfortable with the level of risk in this strategy,
Tactical Select may be a strategy worth exploring.
