Equity investors have thrived during the recent, multi-year bull market. Still, despite higher fees and the promise of better returns, most active managers have failed to beat passive index funds.*
But index funds have challenged investors as well in recent years. Passive investing provides little shelter during major meltdowns like the two that have occurred in the last 20 years that saw 50% of portfolio values evaporate. Markets that investors rode up, they also rode down.
We have a better idea for your equity investments.
BJAM Dynamic Equity invests in ETFs to capture broad market returns, maximize liquidity, and keep costs down. We can even customize your ETF portfolio to give you exposure to the market sectors you’re most interested in. But we don’t stop there.
We’ve built a proprietary quantitative algorithm that constantly looks for changes in market momentum. When our algorithm indicates that a sector has become unstable, we reallocate investments to stable sectors to reduce downside risk, and maximize the market opportunity.
If most sectors become unstable, we hedge out of equity markets to protect capital.
*See the S&P SPIVA year-end 2016 report for more detailed information.