Market Leaders - A New, Innovative Approach to Asset Allocation
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A common investing axiom is that portfolio assets should be invested in a well-diversified
portfolio. A well-diversified portfolio would hold growth & value stocks; large cap, mid cap,
and small cap stocks; domestic & foreign stocks; and an appropriate allocation in cash &
bonds. Then as each market segment goes in or out of favor, the total portfolio should
produce an acceptable rate of return.
Importance of Asset Allocation
A recent study of the returns generated by professional, institutional portfolio managers set
out to quantify the reasons these managers generated different returns over the same time
period. Their study concluded that market timing could account for only 1.8% of the average
return differential, security selection could account for 4.6%, and far and away the most
significant cause of average return differential was due to portfolio allocation at 91.5%.
Different Market Segments Drive The Market
Over time, different market segments gain the favor of investors. During the late 90's, large
cap growth stocks dominated the market. In 2000 and 2001, large growth fell out of favor
and value stocks provided the best market performance. The table shows how the different
market segments performed over the last ten years.
Follow The Leader
Some market segments will perform better than the market, some will perform worse. The
table displays the total market return for each year in the black boxes. In every year, there are
at least two market segments that perform better than the total market. It would follow that
any investor that wanted to achieve a rate of return that exceeds the market should align
their portfolio with the market segments that are performing the best.
Market Leaders Portfolio Management
At Calder Investment Advisors, we believe that investing in the market segments that are
leading the market will provide exceptional rates of return. Our system assists us in
allocating client assets into the top performing market segments. Contact one of our
investment professionals to see how this investment strategy can be implemented in your
portfolio.
Summary
The Market Leaders Asset Allocation Strategy provides:
portfolio. A well-diversified portfolio would hold growth & value stocks; large cap, mid cap,
and small cap stocks; domestic & foreign stocks; and an appropriate allocation in cash &
bonds. Then as each market segment goes in or out of favor, the total portfolio should
produce an acceptable rate of return.
Importance of Asset Allocation
A recent study of the returns generated by professional, institutional portfolio managers set
out to quantify the reasons these managers generated different returns over the same time
period. Their study concluded that market timing could account for only 1.8% of the average
return differential, security selection could account for 4.6%, and far and away the most
significant cause of average return differential was due to portfolio allocation at 91.5%.
Different Market Segments Drive The Market
Over time, different market segments gain the favor of investors. During the late 90's, large
cap growth stocks dominated the market. In 2000 and 2001, large growth fell out of favor
and value stocks provided the best market performance. The table shows how the different
market segments performed over the last ten years.
Follow The Leader
Some market segments will perform better than the market, some will perform worse. The
table displays the total market return for each year in the black boxes. In every year, there are
at least two market segments that perform better than the total market. It would follow that
any investor that wanted to achieve a rate of return that exceeds the market should align
their portfolio with the market segments that are performing the best.
Market Leaders Portfolio Management
At Calder Investment Advisors, we believe that investing in the market segments that are
leading the market will provide exceptional rates of return. Our system assists us in
allocating client assets into the top performing market segments. Contact one of our
investment professionals to see how this investment strategy can be implemented in your
portfolio.
Summary
The Market Leaders Asset Allocation Strategy provides:
- Active Asset Allocation
- Disciplined Investment Strategy
- Seeks to Align Portfolio with Top Two Performing Market Segments
- Positive Investment History
- Provides Asset Protection in Declining Markets
- Portfolio Diversification
- Contact our office to set up an appointment so one of our financial professionals can
show you how the Market Leaders Portfolio can benefit you.
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Calder Investment Advisors
Registered Investment Advisor
Registered Investment Advisor
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