In 2011, we began a Tactical Allocation portfolio that profits from sector and country rotation. This “one portfolio, three models” strategy uses our famed relative strength rotation model, but we apply the model to three different sets of ETFs and mutual funds. Using a three model program helps to alleviate the inconsistency of running an aggressive growth portfolio with just one model and very few holdings.

The Tactical Allocation portfolio has five holdings. The first model invests in Fidelity sector funds and consists of two holdings. The second model trades sector and country ETFs and has two holdings. A market timing model is applied to this model so it can go to cash in a bad market. The third model trades broad-based ETFs and includes an inverse fund. It can go short in a bear market. This model has one holding.

Our closest competitors are hedge funds. Here are our advantages:

• Our client contract is short and easy to understand. You won’t need to hire an attorney to read a lengthy contract.
• We trade your account at Fidelity Investments. We do not take possession of your funds. You can monitor your portfolio at Fidelity’s web site.
• Unlike most hedge funds, there is no fee on profits.

View Performance Results

Research Testing:

• Model #1 – Fidelity Sector Funds
  
  
• Model #2 – Sector/Country ETFs
  
  
• Model #3 – Market Segments

Tactical Allocation Management Fees:

The minimum account size is $50,000.