SAN FRANCISCO, CA--(Marketwired - July 25, 2016) - 55 Capital, an investment manager delivering dynamically managed portfolios using ETFs, announced today the launch of its inaugural suite of strategies designed to provide advisors and investors with portfolios utilizing sophisticated, well-documented techniques broadly used by institutional investors to manage risk and enhance returns.
The 55 Capital suite of dynamically managed strategies will initially be offered in Separately Managed Accounts (SMAs) and Limited Partnership (LP) vehicles. The goal is to utilize the rich ETF landscape to provide access to a broad range of return drivers. The breadth of this approach, when applied in a disciplined manner by our seasoned research team, seeks to provide greater diversification, reduced volatility and improved returns over traditional 60/40 global equity/bond portfolios.
The three key tenets underpinning 55 Capital's investment approach are: utilize rigorous financial and investment research, create portfolios using 100% ETFs and be highly tax efficient. The five strategies are managed with a research-based, risk-based and rules-based approach and consist of the following:
- Dynamic Macro: is 55 Capital's flagship strategy providing a multi-asset class offering that utilizes equities, fixed income, absolute return, commodities, and currencies exposures. The strategy dynamically allocates both across asset classes and on a more granular level within asset classes. This strategy had the highest risk-adjusted returns of the five strategies during our twelve-year testing period.
- Enhanced Macro: has a fixed allocation to equity, bonds and alternatives, while having a dynamic allocation within each asset class to provide higher returns with lower portfolio volatility.
- Global Allocation: dynamically allocates between three equity (U.S., developed and emerging) and three fixed income asset classes (U.S. credit and U.S./emerging sovereign), seeking to deliver broad market benchmark type returns with reduced overall drawdowns.
- Global Equity: delivers U.S., developed and emerging markets equity exposures with a downside risk-oriented framework to deliver broad equity exposure.
- Alternatives: provides a transparent substitute for bond allocations using absolute return, commodities and currencies exposures.
"There is a crisis in investing. Advisors and investors have more tools at their disposal than ever before, but with a lower return market environment, portfolio construction is more important than ever before. We can no longer rely on what we were all taught for decades, that the 60/40 portfolio will help investors achieve their goals," said Lee Kranefuss, co-chairman of 55 Capital.
"The expansive ETF landscape has become more challenging and more complicated, creating new hurdles for investors. 55 Capital's goal is to provide a well-diversified core portfolio that has more return drivers and more active management of risk, tax and performance than most investors have access to today," noted Kranefuss.
"We're in a low yield market environment, and there are more macro risks to navigate. In addition, security selection and buy-and-hold investing no longer works for many investors. We believe the best way to manage capital is to gain exposure to a variety of return drivers and to dynamically manage exposures to these sources of returns for downside protection. We also believe that ETFs represent the most transparent, cost-effective way for a wide range of investors to gain diversified, global, tax-efficient exposure in their portfolios," said Dr. Vinay Nair, co-chairman of 55 Capital.
For more information on these strategies visit 55capitalpartners.com or email us at firstname.lastname@example.org.
About 55 Capital
55 Capital is an investment manager delivering dynamically managed 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, tax and performance 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 a deep research network to systematically manage assets for advisors, high net worth and institutional investors.
Opinions expressed are current opinions as of the date appearing in this material only. While the data contained herein has been prepared from information that 55 Capital believes to be reliable, 55 Capital does not warrant the accuracy or completeness of such information. This communication is for informational purposes only. This is not intended as nor is it an offer, or solicitation of any offer to buy or sell any security, investment or product.
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 U.S. Securities and Exchange Commission nor any state securities administrator has approved or disapproved, passed on, or endorsed, the merits of this document.
The historical results discussed are hypothetical and based on back-tested investment returns of similar indices and 55 Capital proprietary strategies. These historical returns have been computed by 55 Capital based on allocations mandated by the strategies. Historical (or model) performance results have certain inherent limitations. Unlike an actual performance record, such results do not represent actual trading and accordingly, may have under- or over-compensated for the impact, if any, of certain market factors, such as market disruptions and lack of liquidity. In addition, hypothetical trading does not involve financial risk and no hypothetical investment record can completely account for the impact of financial risk in actual trading (for example, the ability to adhere to a particular trading program in spite of trading losses).
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