Absolute Return Strategies
ETF PM’s five absolute return strategies target gains in both up and down markets. These active rules-based portfolios employ trend following in an effort to provide strong growth with principal protection. On a long-term basis, we target average annual returns of 15% to 25% with overriding risk limits of 8% to 12% per year.
Our absolute return strategies include three flexible portfolios and two long/short. In order to reduce risk and maximize client value, all of these strategies may shift into cash as needed, none of them use leverage, and we do not charge a performance fee.
Historical performance is shown in our performance summaries and presentations.
Flexible Portfolios
The Global Growth portfolio offers strategic rotation of ETFs that track broadly diversified equity indices. Over 2.7 years since inception (1/08 – 8/10), our Global Growth portfolio gained +9.7% while the S&P 500 lost -24.0%.
The Aggressive Growth portfolio provides strategic rotation of concentrated ETFs that track individual sectors, developed and emerging foreign countries, commodities, real estate, and/or fixed income. Over 5.7 years since inception (1/05 – 8/10), our Aggressive Growth portfolio gained +31.0% while the S&P 500 lost -2.6%.
The Basic Alpha portfolio employs strategic rotation among diversified ETFs that track global developed equities, emerging markets, real estate, commodities, and fixed income. Over the past eight months since inception (1/10 – 8/10), our Basic Alpha portfolio lost -3.2% while the S&P 500 fell -4.6%.
Long/Short Portfolios
The Long/Short portfolio offers strategic rotation of concentrated ETFs and may shift from 100% long to 100% short. Position holdings track individual sectors, developed and emerging foreign countries, commodities, real estate, and/or fixed income. Over 2.7 years since inception (1/08 – 8/10), our Long/Short portfolio declined by -5.2% while the S&P 500 lost -24.0%.
The Advanced Alpha portfolio is an equal combination of our Global Growth, Aggressive Growth and Long/Short strategies. The blended portfolio may shift between 100% long and 40% short. Over 2.7 years since inception (1/08 – 8/10), our Advanced Alpha portfolio slid -1.2% while the S&P 500 fell -24.0%.
Performance & Presentations
For a complete list of our performance summaries and strategy presentations, please visit our respective pages: Performance and Presentations.
Past performance does not guarantee future results. See the disclosures page for full disclosures on all of our portfolios.
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