Balanced Approach

Balanced/Moderate Growth

Long-term capital appreciation with moderate risk through diversified multi-asset allocation. Designed to outperform a balanced 60/40 benchmark with systematic factor-based investing.

Investment Objective

Primary Goal

Achieve long-term capital appreciation with moderate level of risk. The strategy seeks to outperform a balanced benchmark (60% S&P 500 / 40% AGG) over a complete market cycle of three to five years.

1-2%
Annualized Excess Return Target
3-5 Years
Recommended Time Horizon
60/40
Benchmark Portfolio

Secondary Objective

Limit drawdowns during adverse market conditions through systematic hedging and diversified asset allocation when our models identify elevated risk environments.

Investment Methodology

Multi-Factor Model

Portfolio constructed using our proprietary multi-factor model with 8 factors including momentum, quality, and value across multiple asset classes for true diversification.

Diversified Allocation

Strategic allocation across equities, bonds, precious metals, commodities, and alternative strategies to reduce correlation and enhance risk-adjusted returns.

Quarterly Rebalancing

Disciplined quarterly rebalancing with monthly hedge and leverage reviews to maintain target allocations and adapt to market conditions.

Risk Management

Employs both direct hedging through inverse ETFs and indirect risk mitigation through diversified sector and asset class allocation.

Risk Profile

Moderate Risk Profile

This portfolio balances growth potential with risk management through diversification. Suitable for investors seeking capital appreciation with moderate volatility.

Volatility Expectations

  • Annualized standard deviation: 10-15%
  • Moderate risk approach
  • Balanced growth and stability

Expected Drawdowns

  • Potential drawdowns: 15-25% during severe stress
  • Diversification reduces correlation risk
  • Model-driven hedge activation

Portfolio Allocation

Target allocation reviewed quarterly with leverage and hedge positions adjusted monthly:

US Large Cap Equity40%
US Small/Mid Cap Equity10%
Recent IPO Stocks10%
High Yield Corporate Bonds10%
Business Development Co.10%
Precious Metals5-20%
Commodities5%
Options Strategy5%
Leverage/Hedge (ETFs)10%
Hedge (Inverse ETFs)10%

Ready for Balanced Growth?

Discover how Balanced/Moderate Growth can deliver capital appreciation with diversified risk management.