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

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.

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.

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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.

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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.

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.

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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.

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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.

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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

mypath Asset Allocation Portfolios

Our mypath Asset Allocation Portfolios (MAAP) are strategic asset allocation 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.

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

Opportunity / Opportunity TX Strategy

This strategy targets between 35-40 individual equity positions. It can invest in any exchange traded asset class and is not restricted by market cap, sector, or geographic location, based upon macrocast or microcast indicators, this strategy may hold a substantial fixed income or cash position.

Dynamic ETF / Dynamic TX Strategy

This strategy targets between 17-20 ETF positions and utilizes a core/satellite approach to investing. It can invest in any exchange traded asset class and is not restricted by market cap, sector, or geographic location. Based upon macrocast or microcast indicators, this strategy may hold a substantial fixed income or cash position.

Core Demand / Core Demand TX Strategy

This strategy targets between 20-30 individual equity positions. It applies an ESG filter to identify sustainable, demand inelastic businesses with an emphasis on higher quality and lower volatility. It can invest in any exchange traded asset class and is not restricted by market cap, sector, or geographic location. Based upon macrocast or microcast indicators, this strategy may hold a substantial fixed income or cash position.

Helix Strategy

The Helix Strategy combines strategic asset allocation with tactical risk management to create a holistic client solution. The Corbett Road Opportunity ETF (OPPX) forms the foundation of the Helix Series, complimented by 8-15 exchange-traded funds (ETFs) with target allocations determined by the risk tolerance of the individual investor. Adjustments to individual positions and/or portfolio rebalances will be guided by Corbett Road’s proprietary risk model, macrocast, or by changes to the underlying holdings within the tactical allocation. Pairing actively managed tactical investments with the diversification benefits of passive broader asset allocation exposure, the Helix Series offers a synchronized investment approach with disciplined risk management.