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Advance & Defend

Advance & Defend

This alternative strategy aims to enhance transparency and overall client experience, ultimately resulting in more favorable long-term outcomes. We refrain from placing undue reliance on opinions or predictions. Instead, we leverage market data utilizing supply and demand analysis to intricately identify market trends, assess market exposure, and identify high-performing assets for inclusion in our portfolios. These fundamentals, when combined, equip us with the essential determinants of success: the “when” and “what” factors that are pivotal to our achievements.

Our tactical approach to investing is centered around a simple, yet effective, quantitative Advanced & Defend momentum model that helps manage risk and reduce the potential for unintended consequences. At its core, investing is about balancing risk and reward. While some investors might be comfortable taking on a lot of risk in order to chase higher returns, most individuals don't have a sufficiently long-time frame to recover from large drawdowns in risky asset classes. This is why we prefer to implement a strategy that aims for equity-like returns with bond-like volatility and drawdowns.

We believe that diversification alone is no longer sufficient to temper risk. This tactical approach seeks to reduce risk and signals when an investor should exit a risky asset class and move into risk-free investments. The strategy is best known as a trend-following approach that has been back-tested using the S&P 500 data since 1901, which demonstrates its logic and characteristics. The results show that this approach has outperformed the buy and hold strategy both in absolute and risk-adjusted returns, due to its lower volatility.

This tactical approach is an efficient risk management strategy that helps investors handle periodic volatility without abandoning their investment plan. This is a key factor in achieving long-term investment success, as it allows investors to stay invested even during market downturns, which is crucial for compounding returns over time.

By using the Advanced & Defend strategy, we can avoid prolonged bear markets and instead have fewer occurrences of both large gains and large losses. This results in a higher number of small gains and losses, which is an important factor in reducing overall risk. No investment strategy is perfect, and there will always be some level of risk involved. However, by simplifying the investment process and relying on a rules-based approach, we believe that investors can achieve their goals with a lower level of risk.  Past performance is not a guarantee of future results.

Values, calculations and information are obtained from sources believed to be reliable, however, Concurrent Investment Advisors, LLC ("Concurrent") does not guarantee its accuracy and completeness and is not responsible for any errors or omissions. Concurrent does not provide tax or legal services. You should discuss tax or legal matters with the appropriate professionals. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.

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