This portfolio is strategically allocated across asset classes, including US and international equities, fixed income and alternative strategies. It takes a long-term approach.
The portfolio uses Modern Portfolio Theory to develop a strategic asset allocation appropriate for a long-term investor with typical risk tolerance. This portfolio is well diversified across US and international equities, fixed income and alternative investment strategies. It uses multiple asset classes that are not correlated to control risk. It selects low cost investment vehicles, typically ETFs or ETNs. It overweighs "value" and small stocks to improve risk adjusted performance. It does NOT attempt to time the short-term direction of the market.
We use specialized software (Ibbotson EnCorr) to research historical asset class returns, risk (standard deviation) and correlations. We evaluate risk exposure by reviewing how the model performed in varying market environments, including market downturns. We use Morningstar Principia software as a starting point for researching ETFs that might be appropriate for inclusion in the models. We then contact the fund company for more detailed information prior to making a decision.
The portfolio seeks to be well diversified and will typically hold 15-20 different investments (typically ETFs), representing different asset classes or strategies. It usually includes alternative investment strategies such as commodities, timber and managed futures to control risk via their low correlation to traditional equities. All asset classes have a target allocation percentage. When an asset class varies from its target by +/- 20%, we seek to rebalance the portfolio back to the desired level. To better control risk, rebalancing occurs whenever required, not just once per quarter. We use specialized software to constantly monitor allocations. The portfolio may invest in ETNs that are unsecured debt obligations with values based on the creditworthiness of the underlying companies.
We seek low turnover in the portfolio in order to minimize costs. We will sell if an investment no longer represents the best vehicle to track a given asset class or strategy.
Past performance is no guarantee of future results.
Performance of the Portfolio Manager's account is calculated by Covestor on a daily time-weighted basis, including cash, dividends and earnings distributions and broker commissions. Manager returns include trades and positions that fail Covestor's trading rules, as a result, actual client returns will differ. Covestor advisory fees are simulated and applied retro-actively to present the portfolio return "net-of-fees".
Average client returns are calculated by Covestor and are composed of the asset-weighted average returns of all active client investments (some of which may contain investment restrictions) to the underlying portfolio. These daily average returns are then linked together for the timeframe presented. These returns include cash, dividends, earnings distributions, brokerage commissions and Covestor advisory fees.
All graph data is as of the end of day for the referenced period, unless otherwise specified. The investment minimum is the minimum investment required to follow a particular portfolio. The minimum amount is determined by Covestor, based on the characteristics of the underlying portfolio. It should not be considered as specific investment advice for your investment situation.
The performance charts are provided for informational purposes only, and should not be used as the basis for making an investment decision. Variables such as corporate actions or foreign exchange may affect daily performance displays. We rely on mathematical formulas, computer programs, and pricing information from third-party vendors to provide these returns. Neither Covestor nor any of its data or content providers shall be liable for any errors in this information or any actions taken by you in reliance upon this information.
Benchmark returns have been calculated by Covestor using a time-weighted calculation of daily index valuations.
Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value.
All Portfolio Manager information including personal data, profiles, strategies, monthly investment reports, and historical results outside of Covestor has been provided by the Portfolio Manager. Covestor makes no representation or warranty of its accuracy, completeness or relevance and it does not represent the opinions of Covestor. Transaction history is available upon request. Portfolio classifications are provided by Covestor, and are intended to serve as a general guide.
Not all transactions listed will appear in your account due to Covestor's trading rules and individual client constraints. Eligibility of these securities is monitored periodically, and may change over time. Actual client investment holdings may vary.
Index returns do not reflect any management fees, transaction costs or expenses. Individuals cannot invest directly in an Index. For certain portfolios we use an investable ETF as a benchmark, in these cases returns include management fees, transaction costs and expenses.