There is no ‘Holy Grail’ of investing. Success comes from consistently following a strategy that matches your individual needs for growth and income, while balancing your tolerance for risk. Hamilton-Bates Investment Portfolios employ one of two general methodologies; Strategic Asset Allocation or Tactical Asset Allocation, each with its own set of characteristics and appropriate depending upon an investors objectives and risk profile.

Tactical Allocation
Portfolio diversity reduces risk, but at a cost. When you combine the returns of many asset classes, the resulting average return must always be less than the return of the top-performing asset. If the best asset class earns record returns, as stocks did in the 1990’s, the resulting shortfall in a broadly diversified portfolio could be significant. Through Tactical Asset Allocation, the portfolios are over-weighted in those asset classes expected to do well. The Tactical Asset Allocation Portfolios may at times be non-diversified among asset classes.

Tactical Asset Allocation endeavors to be invested in the most favorable asset classes at any given time, while avoiding those with unfavorable risk/reward characteristics. The strongest asset classes are selected from among equity and fixed income categories using trend quality, relative strength, and macro-economic analysis. By identifying the strongest (anticipated) asset classes, the portfolios can then be positioned in those areas that represent the best opportunity for growth.

Tactical Asset Allocation is an active process which is designed to concentrate investments in leading asset classes.

 

There are six portfolio options in the Tactical Allocation Program, based on investment objective and risk tolerance. Typical asset class breakdowns are shown. Investment positions can and will vary based on economic conditions. These are benchmarks.

Asset Class Ranges ( The Stocks category includes international as well as domestic stocks, while Bonds includes cash equivalents).
 

Strategy Summary
The Tactical Asset Allocation Program identifies those asset classes with strong appreciation potential. The available mutual fund universe undergoes an investment style analysis to insure it reflects the appropriate asset classes recommended. Once the mutual funds are selected, the portfolio is implemented. The portfolios are monitored continuously, and the portfolios are re-balanced as often as the financial markets and the HBIR models dictate. The mutual funds within those portfolios are also regularly reviewed to insure investment style consistency, and adjustments are made if necessary. In addition to their regular statement they receive directly from the funds, clients receive a Quarterly HBIR Account Statement along with a newsletter detailing the current financial market outlook.

The Tactical Asset Allocation Portfolios are appropriate for most investors seeking long-term capital growth. Investors seeking current income, balanced portfolios, or substantially reduced volatility should consider the Strategic Asset Allocation Portfolios. Tactical Asset Allocation Portfolios can hold concentrated asset positions at times, and while this enhances potential investment returns, it can also increase portfolio volatility. The Tactical Asset Allocation Portfolios are well-suited for long-term investors seeking capital appreciation.