Quant | Cross Asset Research, ETF investing, Macro, ETF Model Portfolios
Contributor Since 2017
Astoria Portfolio Advisors LLC ("Astoria") specializes in the construction, management, and sub-advising of ETF Managed Portfolios. When constructing our portfolios, Astoria utilizes a quantitative and cross asset investment framework. We stress test our models through various quantitative risk models in order to understand our portfolio risks and to help determine when risk budgets should be expanded or minimized. Astoria's founder, John Davi, has 18 years of experience spanning across Macro ETF Strategy, Quantitative Research and Equity Derivatives. John was Head of Morgan Stanley’s Institutional ETF Content where he produced hundreds of strategic content pieces over an 8-year period. It was a Multi-Asset job and involved developing investment ideas to add alpha to investors’ portfolios. For more information on Astoria, as well as important disclaimers, visit our website: www.astoriaadvisors.com/disclaimer
Value is emerging across the global equity space. Investors' disdain for equities is quite high. That usually means it’s the time to buy.
Astoria is turning constructive on risk assets after being skeptical last year. We are a buyer of risk assets at these valuation levels. We prefer systematic, rules-based, and multi-factor strategies.
We are attracted to US companies with strong ROE and ROA (i.e. high-quality stocks).
On the international front, we are attracted to value, quality, and low volatility strategies which are dynamically currency hedged. In particular, we like Emerging Markets (which per consensus have the highest earnings growth rate in 2019 and the amongst the lowest P/E Ratio).
In Fixed Income, Astoria prefers ultra-short duration & higher quality bonds for now. We are concerned about the supply/demand imbalance for bonds in 2019.
We believe investors should look at alternatives which are return generators, as well as risk reducers. Merger arbitrage is our top alternative idea for 2019.
When the world was swimming in a world of liquidity, buy and hold was the right strategy. We no longer believe that strategy will work as the Fed normalizes its balance sheet, global economies decouple, and policy risk remains elevated. Don’t be afraid to be tactical and dynamic in 2019.
And of course, we will be including alternatives to soften our portfolio volatility. That is, after all, Astoria’s ‘True North’.
Below are our preferred investment strategies for 2019:
To read the complete report, click here.
Best, John Davi Founder & CIO of Astoria
Any ETF holdings shown are for illustrative purposes only and are subject to change at any time. For full disclosure, please refer to our website: astoriaadvisorsjb | Disclaimer
Disclosure: I am/we are long DGRW, USMF, JPST, MNA, USMV, EMMF, RVNU, IAU, AND USFR.
Additional disclosure: For a compete list of all of our holdings, please refer to our website at www.astoriaadvisors.com.