Times change; markets change. Do your portfolios have the ability to keep up?
One of the primary tenets of the Numetrix Capital management philosophy is that portfolios MUST be able to adapt to changing market environments.
For example, staying with the same pedal-to-the-metal growth approach that was all the rage in the late 1990’s led to a great deal of pain during the ensuing bear markets seen from 2000 through 2008. As such, this was a classic case of the need to adapt to changing market conditions.
Numetrix believes that different market environments demand different strategies.
We believe strongly that investors prefer to avoid the devastating losses and to preserve capital during severe stock market declines. Today, there are managers, strategies, and tools available to combat bear market environments. The trick is to know how and when to apply these tools.
Numetrix programs are designed to automatically and unemotionally adapt to changes in the market environment and/or market structure.
Numetrix Helps Keep Clients from Themselves
Besides the potential for improved performance in negative market environments, utilizing an adaptive approach can help clients stay with their overall investment plan when markets become difficult.
Behavioral finance teaches us that advisors and clients alike fall victim to emotions when dealing with the markets. Investors have a keen ability to utilize hindsight in their portfolios but are generally not equipped to make the tough decisions that often prove successful in the markets.
For example, how many clients wanted to buy stocks in March 2009 after the S&P 500 had fallen 57%? How many clients were ready to step into the stock market after the debt rating of the U.S. government had been downgraded? And how many clients could unemotionally add exposure after each bout of the European debt crisis?
Knowing that a client’s allocation to asset classes and/or management strategies will automatically and algorithmically adjust when a bull market suddenly becomes a bear market and vice versa, allows investors, to “buy and hold” their Numetrix programs for the long run.
Numetrix offers three distinct series of multi-manager, multi-strategy portfolio solutions.