CORBETT ROAD SMARTTACTICAL

HOW WE INVEST

Corbett Road offers both asset allocation and tactical investment solutions to clients. By combining traditional asset allocation with multi-factor tactical strategies, we are not only able to hone in on a risk target that is specific to you but have elements of the portfolio that enable you to be more proactive, reactive, and adaptive to changing market conditions and significant recessionary pressure when it presents itself.

This resulting integration of asset allocation and tactical solutions into one seamless solution is what we refer to as crfusion™. By combining two (or more) of our strategies, we are able to establish guardrails around your maximum and minimum risk parameters. This provides you with a more customized and targeted solution that considers both the positive and negative fluctuations that occur throughout a market cycle. We understand that it’s not just about what you make, but what you keep. As such, the underlying theme of the crfusion™ solution is to enable you to compete with the benchmark when the market is considered “healthy” but provide you with a mechanism of defense when the market faces significant recessionary pressure.

WHAT WE DO

Tactical Allocation

smarttactical™ Strategies

Corbett Road provides several smarttactical™ Strategies that are propelled by two proprietary investment risk models (macrocast™ and microcast™). We refer to these as smarttactical™ because the trades within the strategies are not just made for the sake of being tactical, but due to our data-driven methodology that we believe is a ‘smarter’ approach. These strategies have the ability to invest in any exchange traded asset class and are not restricted by market cap, sector, or geographic location. They may also hold a substantial fixed income or cash position based upon our macrocast™ or microcast™ indicators.

macrocast™ vitals explanation V = Valuation, I = Inflation, T = Technical Analysis, A = Aggregate Economy, Liquidity, S = Sentiment

Our macrocast™ risk model examines data across 6 categories (the “VITALS”) that we believe impact broad market conditions. Within the VITALS we examine more than 20 specific indicators that drive the macrocast™ Score. These indicators are then assessed and classified as signaling a positive (+1), neutral (0), or negative (-1) trend. The final macrocast™ Score is the result of the summation of the classified indicators.

microcast™ TUMS explained, T = Technical Analysis, U = Underlaying Market Breadth, M = Momentum, S = Sentiment

Our microcast™ risk model examines data across 4 categories (“TUMS”) that we believe impact near to intermediate-term market conditions. microcast™ assesses more than 10 specific indicators within these four categories. Each of the indicators are designed to give positive or negative signals that, in aggregate, generate the microcast™ optimal risk allocation. This determines the allocation split between equity and defensive assets within the strategy.

Asset Allocation

Pie chart icon with dollar sign in the center

Asset allocation is an investment approach that aims to balance risk by dividing assets among major categories such as cash, bonds, stocks, and real estate. Furthermore, the goal is to divide your investment dollars among asset categories that do not all respond to the same market forces in the same way at the same time. While one asset category increases in value, another may decrease or may not increase as much. The risk-return tradeoff lies at the core of this approach.

Fundamental Analysis

In addition to our macrocast™ and microcast™ analysis, we utilize fundamental analysis throughout our equity selection process. This process primarily seeks and is driven by three segments.

Teal line icon in the shape of an knights helmet
Titans

One that is gigantic in size or power; one that stands out for greatness of achievement.

The foundation of the portfolio is built on the back of Titans. These are generally large, established businesses, with sustainable competitive advantages that support consistent revenue growth, predictable earnings, and high return on invested capital (ROIC). Titans are generally seen as longer-term investments in companies that will likely still be leaders over the next 10 years.

Teal Trailblazer icon of silhouette man hiking
Trailblazers

One who must pave a path for themselves. A trailblazer may not have the same opportunity or leg up as others but isn’t afraid to blaze the trail and not look back.

Trailblazers are generally younger or smaller companies. They are in the building phase of their growth cycle, often reinvest heavily into their own business, and have a long runway ahead. Typically, these are growth or momentum-style investments that offer innovative products or services. They have accelerating earnings or sales growth, exhibit relative strength, and expect margin expansion as they finish laying the groundwork.

U-turn line icon in the color teal with three arrows pointing up
Turnarounds

One that is experiencing an abrupt or unexpected change, especially when that change results in a more favorable situation.

Turnarounds are generally value-style investments that are trading at discounted valuations with improving economic prospects. They can also be cyclical stocks that tend to outperform during certain stages of the economic cycle.

WHAT WE OFFER

Passive Solutions

mypath Asset Allocation Portfolios™

Our mypath Asset Allocation Portfolios™ (MAAP) are strategic asset allocation1,2 strategies focused on providing diversified portfolios with risk-adjusted returns. The diversification of holdings within each portfolio seeks to reduce the overall risk in terms of variability of returns.

MAAP Traditional

MAAP Traditional provides a well-diversified asset allocation that can be used in any type of account.

MAAP Dividend

MAAP Dividend provides a well-diversified asset allocation solution that focuses on income-producing equity ETFs.

MAAP Tax-Aware

MAAP Tax-Aware provides a well-diversified asset allocation solution that utilizes municipal bond ETFs in an effort to produce a more tax-aware result.

Active Solutions

The active strategies seek long-term growth of capital. They are designed to remain fully invested throughout the economic cycle and weather market volatility, with the goal of generating alpha through stock selection.

Select Q

This strategy is a concentrated, growth equity strategy, seeking long-term capital appreciation through investments in innovative, large-cap growth stocks. The strategy selects 25 stocks from the Nasdaq-10 Index® using a multi-factor model to identify high-quality, high-growth businesses exhibiting positive earnings momentum.

Opportunity

This strategy targets between 35-40 individual equity positions, though it may invest in ETF’s or other exchange traded assets when needed. It takes a dual-pronged approach to research and investment. Top-down macroeconomic analysis is utilized to assess the current market environment and drives portfolio-level positioning within the equity universe. Individual investments are selected using a bottom-up, fundamental approach. In combining top-down macroeconomic research with individual stock selection, economic events are recognized for their potential to affect overall market returns while a deeper analysis of individual investments aims to incrementally add to potential returns.

Dynamic ETF

This strategy targets between 17-20 ETF positions and utilizes a core/satellite approach to investing. Using a top-down approach, individual investments are selected based off the firm’s research and analysis of the market cycle. Certain styles, factors, and industries outperform at different stages of the market cycle, and Dynamic ETF seeks to capitalize on these trends by making active sector investments and concentrated satellite investments in factor and industry-focused ETFs.

Core Equity

This is an active strategy that seeks long-term growth of capital. This strategy targets 45-50 equity positions and is designed to remain invested through market volatility and economic cycles. The Core Equity strategy selects 45-50 stocks from the S&P 500 Index using a multi-factor model that seeks to identify US large-cap businesses with industry-leading scale, operating efficiency, and earnings momentum. The strategy offers concentrated exposure to established market leaders while maintaining a sector composition similar to the index.

Hybrid Solutions

Helix Strategy

The HELIX Series combines strategic asset allocation with tactical risk management to create a holistic client solution. Actively managed, tactical exchange-traded funds (ETFs) form the foundation of the HELIX Series, complimented by 8-15 broadly diversified ETFs. Target allocations of equities to fixed income investments are determined by the risk tolerance of the individual investor. Specifically designed for taxable accounts, the HELIX Series seeks to capture the risk reduction benefits of tactical management in a tax-efficient manner.

Buffered Outcome Strategies (BOS)

Our Buffered Outcome Strategies provide a solution to investors that find experiencing losses to be more difficult than missing out on potential gains. These strategies utilize exchange-traded funds (ETFs) that seek to provide investors with returns linked to the performance of an underlying index(es), while also offering a degree of downside protection over a specified time period.

smarttactical™ Solutions

Our smarttactical™ Solutions are driven by one of our two proprietary risk analysis models (macrocast™ and microcast™).3 The strategies driven by microcast™ are denoted by the letters “TX”, indicating the experience within those strategies are driven more by technical analysis.

Opportunity MX / Opportunity TX Strategies

These strategies target between 35-40 individual equity positions, though they may invest in ETFs or other exchange-traded assets when needed. They can invest in any exchange-traded asset class and are not restricted by market cap, sector, or geographic location. Based upon macrocast™ or microcast™ indicators, these strategies may hold a substantial fixed income or cash position as broader macroeconomic conditions deteriorate and are deemed favorable.

Dynamic MX / Dynamic TX Strategies

These strategies target between 17-20 ETF positions and utilize a core/satellite approach to investing. They can invest in any exchange-traded fund (ETF), and they primarily invest in broad market index ETFs,  sector and industry-specific ETFs, as well as factor and style-focused ETFs. Based upon macrocast™ or microcast™ indicators, these strategies may hold a substantial fixed income or cash position as broader macroeconomic conditions deteriorate and are deemed unfavorable.

Core Equity MX / Core Equity TX Strategies

This is an active strategy that seeks long-term growth of capital. This strategy targets 45-50 equity positions and is designed to remain invested through market volatility and economic cycles. The Core Equity strategy selects 45-50 stocks from the S&P 500 Index using a multi-factor model that seeks to identify US large-cap businesses with industry-leading scale, operating efficiency, and earnings momentum. The strategy offers concentrated exposure to established market leaders while maintaining a sector composition similar to the index.

  1. Asset allocation strategies and diversification do not ensure a profit or protect against loss.
  2. Investments in securities and other instruments involve risk and will not always be profitable.
  3. Tactical investing is generally more complex and may involve higher or different risks than standard long-term (strategic) investment strategies.
  4. ESG investing is sometimes referred to as socially responsible investing. Corbett Road Investment Management uses a 3rd party for the analysis and screening process that looks for companies that adhere to certain ESG standards. ESG strategies may limit or eliminate exposure to investments in certain industries or companies that do not meet specific ESG criteria. As a result, an ESG portfolio may under-perform other diversified portfolios or an appropriate benchmark that does not have an ESG focus and may forgo certain market opportunities available to strategies that do not use these criteria.

About Corbett Road

We pride ourselves on our discovery process, comprehensive financial planning, a proprietary approach to tactical investment management, and a high level of client service. We appreciate the uniqueness of each of our clients and the relationships that result from partnering with them.
  . 

Recent Posts

 

Useful Links

Contact Us

Toll Free: 844.688.4955

E-mail: [email protected]

7901 Jones Branch Dr, Suite 800 McLean, VA 22102

  • All third-party trademarks and service marks on the Corbett Road Wealth Management website (www.corbettroad.com) are the property of their respective owners, and the use of these names, trademarks and brands does not imply endorsement.

    Spire Wealth Management, LLC is a Federally Registered Investment Advisory firm. Securities offered through an affiliate, Spire Securities, LLC. Member FINRA/SIPC | DISCLAIMERS.

    ©Copyright 2024 Corbett Road Wealth Management. All rights reserved. FINRA Broker Check  Spire Investment Partners