A C T I V E R I S K M A N A G E M E N T
Over a business cycle - Our strategy is designed to
outperform their benchmarks with less volatility
Learning from History
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History has shown that over the past century the U.S. stock market has greatly outperformed other asset classes, including bonds, gold and real estate. Investors with a longer time horizon may want to invest in stocks to participate in the productivity gains and growth of our society. But the stock market is subject to sharp corrections that rattle investors' nerves. In the Great Recession, the U.S. equity market declined by more than 50 percent!
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Our strategy lets an investor participate in the returns of the equity market, but is designed to limit the drawdowns that typically occur in recessionary environments.
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Generating Alpha
Our strategy is designed to achieve - over a business cycle - returns in excess of a buy-and-hold strategy by limiting drawdowns typically experienced in recessionary periods. To implement our strategies and determine the level of economic strength, Maycrest Capital uses its proprietary BearCasting model.
BearCasting® Model
Over a 18-year period, we have developed and refined our proprietary model, the BearCasting model. The BearCasting model is designed to identify times when investments in the stock market should be reduced to pare down risk. The BearCasting model utilizes a variety of macroeconomic indicators and composites, as well as sentiment and market technical analyses. See our Resources Page for some of the indicators we use. We designed our strategy around the avoidance of drawdowns in unfavorable economic environments.
BearCasting - using our proprietary BearCasting model to navigate the market - enables us to decide how to position the portfolio, to determine whether we should remain invested in the equity market, pare back the exposure, exit the market, or invest in inverse ETFs. Letting investments grow with the market when the environment is favorable and protecting them from severe declines in bear markets is what we have set out to do.
BearCasting - using our proprietary BearCasting model to navigate the market - enables us to decide how to position the portfolio, to determine whether we should remain invested in the equity market, pare back the exposure, exit the market, or invest in inverse ETFs. Letting investments grow with the market when the environment is favorable and protecting them from severe declines in bear markets is what we have set out to do.
BearCasting is our business!
What Does the BearCasting® Model Signal Now?
Our BearCasting model guides our investment decisions, allowing us not to be influenced by the noise of every-day market events. Simplified, the model tells us: Should we be invested in the broad U.S. stock market, adjust the equity exposure to respond to a change in the economic or technical and sentiment indicators, or exit the equity market/go short?
Our BearCasting® Model signals
that long equity positions should be increased.
that long equity positions should be increased.
About Our Strategy
Our strategy is designed to grow wealth by investing in the U.S. stock market but incorporate a layer of capital protection. The exposure to equities is reduced before anticipated recessions.
Protection of capital becomes vital in down markets.
Maycrest Tactical Equity Strategy
Our Maycrest Tactical Equity Strategy*) is an equity long-short strategy with a long bias. It is a tactical asset allocation strategy, that is, we adjust the exposure to the stock market depending on the risk we see in the market.
A few highlights:
A few highlights:
- The benchmark of the Maycrest Tactical Equity Strategy is the S&P 500 Total Return Index.
- The strategy takes an active risk management approach to investing in the stock market.
- The strategy invests in the U.S. stock market when the market is in an uptrend or trading within a trading range. The Strategy is designed to capture the return of the broad U.S. equity market.
- Assets are typically invested in exchange traded funds ("ETFs").
- Equity market exposure is reduced when an equity market decline is anticipated as a result of expected weak economic conditions. Assets held may include bonds, inverse ETFs and other hedging instruments.
Let's Connect
Before investing in any strategy, investors should perform in-depth portfolio, suitability, and risk analyses. Some investors may perform these analyses themselves - perhaps they are sophisticated investors or they have worked with knowledgeable financial advisors in the past. Others may wish to consult with their advisors.
There is no guarantee that our strategies will perform as designed or that the strategies will be profitable. Investors should expect unprofitable periods. Past performance is not indicative of future performance.
Maycrest Capital
Phone: 561-632-6547
E-mail: info@maycrestcapital.com
Phone: 561-632-6547
E-mail: info@maycrestcapital.com