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PAR Model
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Frank Donovan, Vice President Model Capital Management LLC constructs tactical ETF-based portfolio management strategies. Model Capital provides these tactical strategies in research reports tailored to registered investment advisors. These tactical strategies are based on near-term return and... More
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Model Capital Management LLC
  • Tactical Asset Allocation Can Be Successful With The Right Model 0 comments
    Sep 21, 2012 11:37 AM | about stocks: SPY

    Interesting article by Alexander Melnikov, PhD:

    Portfolio returns in excess of an index can be achieved through active investment management in two ways: security selection, and active (or tactical) asset allocation. Research shows that about 90% of a typical balanced stock-bond portfolio risk and return comes from Policy asset allocation - see Brinson et.al. (1986, 1991), Ibbotson & Kaplan (2000). Clearly, potential for adding value through actively managing asset allocation is greater than from active security selection. However, while active security selection is widely practiced, tactical asset allocation (TAA) has been largely overlooked or out of favor. Here, we discuss some of the reasons for this, and describe the process that should be followed in order to successfully perform TAA.

    read full article here: http://parmodel.com/1170/

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: SPY
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