We seek to provide the optimal balance between expected risk and return by appropriately allocating capital to specific asset classes and investment strategies.
- We assess relative valuation, as well as historical and expected returns, volatility, and correlations (co-movement) among asset classes.
- Our asset allocation decisions are supported by sophisticated modeling tools that provide returns-based and holdings-based analyses to determine risk factors relative to applicable benchmarks.
- We assess long-term capital market assumptions to develop a strategic asset allocation (SAA).
- We also employ tactical asset allocation (TAA) based on short-term forecasts and adjust portfolio positioning with the objective of capitalizing on disparities between price and value.