Our Pathfinder Portfolio seeks to find the best near-term path forward by investing in areas of the financial market that will outperform others. Pathfinder is a momentum asset allocation methodology, also known as a trend-following or relative-strength methodology. Oftentimes particular types of investments will do well for prolonged periods of time. Our Pathfinder Portfolio attempts to take advantage of this momentum effect by identifying and investing in strongly-performing investments, and then shifting away when their performance fades to better opportunities.

Among our strategies, this portfolio is the one most likely to give you regular exposure to the best performing parts of the financial market, while avoiding the worst. Our Pathfinder Portfolio may invest in U.S. or foreign stocks, different types of bonds, as well as real estate trusts and commodities. Our Pathfinder Portfolio invests exclusively in the strongest performing parts of its investment universe. Although this might produce broadly diversified holdings in stocks, bonds, real estate and commodities, it might also at times be invested entirely in stocks for example.

Some investors may choose to emphasize our Pathfinder Portfolio or even exclusively use this strategy. But for most investors, who appreciate the benefits of our research-driven and broadly-diversified Alhambra Portfolio, we think this rules-based momentum strategy acts as an excellent complement.

For a comprehensive overview of the Pathfinder Portfolio continue reading…