Alpha Mid-Cap Power Index Managed Account
The Alpha Mid-Cap Power Index Managed Account is an asset allocation strategy which seeks to exploit several seasonal influences on the stock market. In general, these long-term seasonal influences have tended to "skew" returns into a seven-month period beginning in late-October, which we refer to as the "power zone", and three specific sub-periods in the final three months of the year, which we refer to as "power periods". Our research also shows that the bulk of bear markets and other significant market corrections have tended to occur in the five-month period from the end of May to November, which we refer to as the "dead zone".
Each year, the investment rules of the Alpha Mid-Cap Power Index Managed Account strategy are as follows:
º Hold an S&P MidCap 400 Index fund/ETF from late-October to the end of May during the seven "seasonally favorable" months which we refer to as the "power zone". As a result, equity exposure is constrained to 60% of the available trading days each year.
º Hold a conservative intermediate-term bond fund/ETF during the remaining five months of the year which we refer to as the "dead zone".
º During the fourth quarter of each year, the strategy holds a 1.5x leveraged mid-cap index mutual fund during three "power period" trades totaling 20 days.
This strategy is designed to:
→ Achieve consistently positive returns with much lower volatility than that of a buy-and-hold approach.
→ Exceed our benchmark index from bull market high to bull market high and from bear market low to bear market low.
Click here for the strategy brochure
Click here for the strategy fact sheet