Macro Analysis employs both internal and externally sourced research. Internal research tools include our quarterly Economic Strategy Workbook, historical market data, and analysis of the current Economic and Business Cycle. Externally, we source and leverage high quality street research.
ASSET ALLOCATION MODELS
Investment Process
For clients seeking a comprehensive solution, our Asset Allocation models seek to provide the highest rate of return for a given level of risk. Our investment selection and allocation is based on our forward-looking capital market assumptions and in-depth investment screening process to optimize the appropriate mix of equity, bond, and alternative investments.
The investment process employed utilizes a combined Top-Down and Bottom-Up approach to formulate the Strategic Models:
MACRO ANALYSIS TO DETERMINE CAPITAL MARKET ASSUMPTIONS
ASSET ALLOCATIONS AND MODEL ESTABLISHMENT
Current model allocations are determined and established based on the application of the investment committee’s research and analysis work within the confines of the investment process.
SECURITY SELECTION
Using our security selection process, we build the model portfolios bottom-up, employing a multi-factor scoring system to identify investment vehicles that exhibit robust risk and return characteristics.
We score each applicable universe on multiple different weighted statistical factors, and determine which investment fit is the best. These factors analyze:
- Efficiency
- Tradability
- Fit
- Raw & Risk-Adjusted Performance
- Downside/Tail Risk
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Investment advice offered through Level Four Capital Management, LLC, an SEC registered investment advisor. Level Four Capital Management, LLC provides investment management services to institutional and individual investors. Prior to October 2019, Level Four Capital Management, LLC conducted business as Level Four Asset Management, the asset management division of Level Four Advisory Services, LLC., an SEC registered investment advisor that provides investment management services to institutional and individual investors. Level Four Capital Management, LLC manages a variety of value and quantitative strategies.
Investing involves risk including loss of principal. The investment returns and principal value of the portfolio will fluctuate so that the value of an investor’s account, when redeemed, may be worth more or less than their original value. No strategy assures success or protects against loss.
All indices are unmanaged and may not be invested into directly.
Investors should consider the investment objectives, risks, charges and expenses of mutual funds and exchange traded funds carefully before investing. The prospectus and, if available, the summary prospectus contains this and other important information about the fund(s). You can obtain a prospectus and summary prospectus from your financial representative. Read carefully before investing.
ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses. Unlike mutual funds, ETF shares are bought and sold at market price, which may be higher or lower than their NAV, and are not individually redeemed from the fund.
Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.