how we do it: strategies & PORTFOLIOS

High yield bond strategy

This strategy measures the trends of High Yield Corporate and Municipal Bond funds to determine their respective trends. In the High Yield Bond market, when the trends are positive, it historically has indicated a positive investing environment. When the trend of the High Yield Bond market is negative, it has historically indicated a negative investing environment. This conservative approach to investing is designed to reduce risk by moving to the safety of money market funds when the investing environment is negative. This strategy exhibits the lowest risk among the strategies utilized by Global Investment Solutions and has been used in client portfolios since 2003. This strategy was designed to provide a long term attractive return relative to risk strategy that could be used as a single strategy in a portfolio or as a core component within a multi-strategy portfolio. Questions? Connect with us.

reversal strategy

Each day, investment decisions are made between the relatively risky stock market and the relatively safe treasury bond market. Investors may sense when the stock market is too hot and decide to sell their stock position and invest in long term treasury bonds. Alternatively, they may sense more opportunity in the stock market and move their funds from treasuries to stocks. This reversal in investment position is captured by the Reversal Strategy. This strategy was designed to be a core component in portfolios. The Reversal Strategy builds on the High Yield Bond Strategy because reversal decisions are statistically different when the trend of the High Yield Bond market is positive versus when it is negative. Thirty years of daily S&P 500 and long-term treasury bond mutual fund data is used to set investment decision thresholds. Funds are invested in the stock market (S&P 500 and NASDAQ 100) when the reversal statistic is below threshold and in a long-term treasury mutual fund when the reversal statistic is above threshold. The training process updates the decision thresholds as stock and bond markets evolve. Compared to the stock indexes, thorough testing and analysis have validated the effectiveness of the Reversal Strategy in reducing portfolio drawdowns and in improving annualized returns. Questions? Connect with us.

stock strategies

These strategies, by design, are the most aggressive strategies offered by Global Investment Solutions with the best upside potential and an increased downside risk. Therefore, they are designed to be a part of portfolio, not an investor’s entire portfolio. The individual stock strategies are designed to attempt to be more fully invested in leading stocks in all market conditions.  The strategies will own a basket of stocks statistically selected from leading stock indexes. The selected stocks are evaluated frequently to make sure they are maintaining a high ranking in order to stay in the portfolio. The ranking incorporates absolute and relative momentum as well as the persistency and quality of the momentum. The small number of stocks selected are very important to a portfolio’s overall return. Being fully invested in leading stocks at low points of market corrections and bearish market regimes is a driver of returns from critical turning points in the market. Questions? Connect with us.

PORTFOLIOS CHOICES

Combinations of Strategies to build a portfolio with targeted risk vs. return characteristics: To best utilize strategies developed by Global Investment Solutions, a managed portfolio comprised of a combination of the strategies is generally recommended. Portfolios may be designed with attention to both risk management and investment total returns to address a wide range of investor return to risk needs. Each portfolio has its own profile which can be illustrated with both hypothetical and actual data and in graphical formats.