SAN FRANCISCO, CA--(Marketwired - March 02, 2017) - 55 Capital, a registered investment advisor delivering dynamic portfolios using ETFs, announced today the release of the 55 Capital Market Risk Indicator (55 Capital MRI), the first global, multi-asset class measure that forecasts monthly the level of risk in the markets.1 The 55 Capital MRI is an important measure for investors to assess the likelihood of significant losses in a global, diversified portfolio in the near to medium term, so they can position their holdings more defensively.
Dr. Vinay Nair, Co-Chairman, 55 Capital, said: "We believe, now with the 55 Capital MRI, investors and advisors have a more comprehensive global risk measure to help guide their portfolio decisions. The global, multi-asset and multi-dimensional aspect of 55 Capital MRI is a significant step forward in helping investors and advisors, who typically focus on one risk measure in one asset class (such as the VIX, which only looks at implied volatility of S&P 500 Index options) or multiple metrics that they then need to reconcile."
Unlike VIX which is bi-directional in that it can't predict if the markets will go up or down, the 55 Capital MRI is designed to assist in guarding against negative market conditions, which is particularly important as markets are negatively skewed. It is an integral part of the risk targeting capability at 55 Capital and it influences our global strategies that are benchmarked to the 60% equity/40% bond benchmark. The MRI is scaled from 0 to 100, with 0 indicating low risk and 100 forecasting high risk. When the MRI is high, 55 Capital's strategies move towards a diversified shelter basket that typically includes short-term U.S. Treasuries, gold, and the U.S. Dollar. When MRI is low, 55 Capital's strategies will tend to be closer to the 60% equity/40% bond benchmark allocation.
Bruce Lavine, CEO, 55 Capital, said: "The 55 Capital MRI helps investors and advisors be nimble through risk targeting. At 55 Capital, we believe investors' risk budgets should not be static as market conditions change often. The 55 Capital MRI is a unique and new tool to help investors, particularly those who are concerned about capital preservation in addition to growth."
The 55 Capital MRI is at 12 as of March 1st, down from 41 at the beginning of the year.
The MRI utilizes over a dozen quantitative metrics to gauge risk across global equity and bond markets. The metrics include measures of uncertainty in multiple global asset classes, valuation metrics, economic growth, and trend indicators to reflect investor sentiment and capital flows. While there will be months where actual risk environments deviate from those predicted by the MRI, the MRI provides a robust and insightful tool across a range of conditions.
About 55 Capital
55 Capital is an investment manager delivering dynamic portfolios that span numerous asset classes, market segments and geographic exposures. 55 Capital's goal is to provide well-diversified core portfolios that has more return drivers and more active management of risk and tax than most investors have access to today. 55 Capital implements its strategies with 100% ETFs to provide precise, low-cost, tax-efficient access to a wide range of asset classes. The firm, with offices in San Francisco, New York, and Mumbai, leverages the combined wisdom of ETF pioneers and a deep research network to systematically manage assets for advisors, high net worth and institutional investors.
For more information, visit 55capitalpartners.com or email us at email@example.com.
The information contained herein regarding 55 Capital Partners, LLC ("55 Capital") is confidential and proprietary and intended only for use by the recipient. The information contained herein is not complete, and does not contain certain material information about the investment strategy, including important disclosures and risk factors associated with such investment, and is subject to change without notice. Neither the Securities and Exchange Commission nor any state securities administrator has approved or disapproved, passed on, or endorsed, the merits of this document.
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1 Sources: 55 Capital research, Data from CBOE and Bloomberg, as of February 1, 2017.