Strategies for Portfolio Management

401kActiveWatch uses a series of investment models, called AlphaSolutions Models, which are provided by Harvest Investment Services, LLC, and tactically managed by their Portfolio Management Team. All of these models follow a principal of Fact-Based investing which is Rules Driven.  This means the Portfolio Management Team makes investment decisions based solely on current Market Facts (without speculation) and they comply strictly with the Rules of the Model (no emotions).  The Portfolio Management Strategy employed by Harvest Investment Services, LLC is often referred to as Systematic Tactical Investment Management.

OUR INVESTMENT MODELS

These models have been selected by 401kActiveWatch, as appropriate for participants within a Qualified Retirement Plan – such as a 401k Plan. Provided below are brief descriptions of their investment strategy, along with an informative video presented by the Senior Portfolio Manager of Harvest Investment Services, LLC.

13/50 Crossover Trend

13/50 Crossover Trend

Alpha Solutions

We employ a technical investment strategy based on a set of rules that analyze the trend of five major domestic indices to determine if a risk on or risk off approach should be taken. Risk on or risk off is determined by examining the trend of each index independently. The technical trend is the assessment of where the short term moving average is, relative to the long term moving average for each index.

Watch this in-depth video regarding our 13/50 Crossover Trend Model.

Sector Rotation

Sector Rotation

Alpha Solutions

We employ a risk on/risk off strategy. Quarterly technical trending strategies are used to evaluate and to determine if the portfolio will invest in equity positions for that quarter. After the determination to invest in equity positions for that quarter has been made, we then select highly-ranked U.S. equity sectors for that month. The following month we reevaluate the relative strength of the U.S. equity sectors and determine which highly ranked U.S. equity sectors should be invested in. We evaluate the relative strength of the different sectors of the market each month for that quarter and invest accordingly. This type of investing is typically characterized as momentum investing.

Watch this in-depth video regarding our Sector Rotation Model.

Momentum Low/ Medium/ High Equity

Momentum Low/ Medium/ High Equity

Alpha Solutions

We employ a maximum/minimum investment allocation to equities that is dependent an investor’s risk profile and on market trends. The maximum amount allocated towards equities is dependent on the model; low exposure -30%, medium exposure -60% or high exposure – 90% and the model is predetermined based on risk profile, financial goals or discussions with an investment advisor.

Technical trending strategies are used to evaluate and determine if the maximum or the minimum allocation in equities should be invested for that quarter. After the determination to invest in equity positions has been made, we then select highly-ranked asset classes to invest in and be held for that quarter. The following quarter we reevaluate the technical trend of the equity markets to determine if the maximum or the minimum equity exposure should be taken.

Watch this video discussing our Momentum Model in-depth.

Reduced Volatility Bull Bear

Reduced Volatility Bull Bear

Alpha Solutions

We analyze a number of technical indicators to determine if the equity market is in a bull or bear market. During a bull market as measured by our bull-bear indicator, we will be fully invested in equity holdings. After the determination that the equity market is in a bull market, we then evaluate numerous equity classes and select the ones that are ranked highly, relative to other equity classes and invest in them for that quarter. During a continued bull market we examine the relative strength of numerous equity classes and reallocate the holdings on a  quarterly basis We evaluate the bull-bear indicator weekly to assess if we should maintain our equity exposure or if the market has entered a bear market and we should take risk control measures.

Watch this in-depth video on the Reduced Volatility Bull/ Bear Model.

Bull-Bear Calendar

Bull-Bear Calendar

Alpha Solutions

We analyze a number of technical indicators to determine if the equity  market is in a bull or bear market. During a bull market as measured by our bull-bear indicator, we will be fully invested in equity holdings. After the determination that the equity market is in a bull market, we then evaluate numerous equity classes and select the ones that are ranked highly, relative to other equity classes and invest in them for that quarter. During a continued bull market we examine the relative strength of numerous equity classes and reallocate the holdings on a quarterly basis We evaluate the bull-bear indicator weekly to assess if we are to maintain our equity exposure or if the market has entered a bear market and risk control measures should be taken instead.

Watch this video with an in-depth discussion on the Bull/ Bear Calendar Model.

Multi-Sector Fixed Income

Multi-Sector Fixed Income

Alpha Solutions

We employ technical trending strategies that utilize relative strength to evaluate and invest in high ranking fixed income sectors. We rank each sector daily according to our trending strategies and at the start of each quarter we invest in three of the four highest ranking fixed income sectors. We eliminate the highest ranked sector due to the likelihood of mean reversion and invest in the following three sectors. Each quarter we repeat the process of ranking the fixed income sectors and then investing in those that meet the criteria. This type of investing is typically characterized as momentum investing. The economic cycle is cyclical and as the economy goes through periods of expansion and periods of weakness, during these periods various sectors within the fixed income market behave and perform very differently therefore continually investing in highly ranked sectors may improve total return.

Watch this video with an in-depth discussion on the Multi-Sector Fixed Income Model.

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