Tactical Allocation

Our dynamic, tactical allocation decisions are driven by active and in-depth proprietary research we conduct in-house that incorporates evaluating the investment landscape from multiple angles.  The primary areas of analysis include Global Econometric Analysis, Market Valuation Analysis, Market Psychology Analysis, and Financial Analysis of Sectors and Individual Companies.

Our analysis process includes utilizing objective, high caliber, highly intellectual research from several institutional sources as inputs to our decision matrix.  However, the foundation of our research strategy is a fully proprietary multi-factor quantitative model we have developed that objectively guides our assessment of the global investment landscape.  This econometric model is called the Smith Capital Allocation Engine, and it forms the core of our Capital Allocation Decision Process.

We follow the process displayed above in making decisions about tactical allocation moves within our Core Wealth Steward portfolios.  We also utilize this process to manage our Smith Capital Tactical ETF Portfolio and to drive the capital commitment decision within our Smith Capital Opportunistic Equity portfolio. The Opportunistic Equity portfolio is exclusively focused on seeking out excess returns through investments in a concentrated basket of undervalued stocks.  We use our tactical allocation decision process to determine appropriate levels of cash to keep on hand in these portfolios.