The Tactical Portfolios range from ETF-based trend-following models to all-stock or all-bond model portfolios that are actively managed. While we tend to use the same asset classes as are found in our Strategic Portfolios, the allocation to each asset class is adjusted using a top-down approach based on our economic outlook, as well as fundamental and technical analysis. The Tactical Portfolios are global in nature, but do not have specific geographic allocation requirements. Our Tactical Investing Process is as follows:

From this process we derive the Tactical Portfolios. Here is a brief description of each model portfolio:

World Allocation

The World Allocation Model is an all-ETF global asset allocation portfolio designed to reduce risk through diversification across the basic asset classes outlined previously. The percentages invested in each asset class can vary significantly from the passive portfolios, and unlike the strategic portfolios, asset classes can be excluded, hedged or shorted depending on conditions.

Global Opportunities

Our Global Opportunities Model is an all-equity portfolio that diversifies across the broad asset classes with the purpose of outperforming the S&P 500, while tolerating less risk. The portfolio is constructed using a top-down approach, concentrating first on economic outlook. A sector analysis is utilized, followed by individual stock analysis and then selection. The portfolio takes a long-term approach and turnover is minimized as much as possible to maximize tax efficiency.

Trend Follower

The Trend Follower Model is a rules-based, momentum portfolio derived from the basic strategic models.  The portfolio follows a strict set of technical trading rules developed by Mr. Calhoun and is intended to be defensive. It is primarily driven by the utilization of sound technical indicators, most notably the 50 and 200-day moving averages. Two variations of the model exist – US and International. Both variations of the model have not had a down year since their inceptions.

Select Countries

The Select Countries Model is an international portfolio constructed using single country ETFs.  The portfolio is managed using macroeconomic and technical analysis to identify the countries with the greatest potential for growth. The portfolio invests in both developed and developing market economies.

World Bond

The World Bond Model is designed foremost as a capital preservation account. The primary investment is the Barclay’s (formerly Lehman) 1-3 Year Treasury Index which is a very stable, low-risk fixed income option. A range of fixed income options can be used when the risk/reward warrants. The portfolio consists primarily of fixed income ETFs and may include foreign currency bonds.

Tax Free

The Tax Free Model is designed as a capital preservation vehicle using tax-free municipal bonds primarily in the form of ETFs.

For more information, please visit our Model Portfolios page, or email us at info@alhambrapartners.com.