SOURCE: Newfound Research

Newfound Research

February 27, 2015 09:00 ET

Newfound Research Launches Risk Managed U.S. Sectors Strategy

Newfound Enhances Its Strategy Line-Up With "Protect and Participate" Domestic Equity Solution

BOSTON, MA--(Marketwired - Feb 27, 2015) - Newfound Research LLC (www.thinknewfound.com), a quantitative asset management firm focused on tactically risk-managed investment strategies, today announced the expansion of its strategy line-up with the launch of the Newfound Risk Managed U.S. Sectors strategy.

Since September 2008, Newfound has provided research from its dynamic volatility-adjusted momentum models to help power its clients' risk-managed, domestic sector strategies, which have exceeded $10 billion of assets. Newfound's models place momentum firmly in the driver seat of the investment process, recognizing that volatility is an opportunity on the upside and a danger on the downside.

"Our decision to launch this strategy was driven by advisor demand," said Tom Rosedale, CEO. "Financial advisors have requested that we make available a U.S. sector rotation strategy implemented through ETFs and powered by signals generated from Newfound's algorithms, a combination that has not been available to advisors since it was offered by one of our former clients. We are pleased to introduce a U.S. sector strategy powered by Newfound's models, which will be managed and offered exclusively by Newfound."

The strategy is constructed from 9 exchange-traded funds, representing the U.S. economic sectors, plus a short-term Treasury ETF. The strategy seeks to provide meaningful upside domestic equity market participation while avoiding significant losses in bear markets by selectively removing sectors that Newfound's models identify as a potential risk to capital safety. In its most defensive positioning, the strategy will hold only the short-term Treasury ETF.

"Advisors are drawn to our strategies because the underlying models have not only delivered on their 'protect and participate' mandate, but also because the tactical shifts we've made have been intuitive for them to understand and explain," said Corey Hoffstein, CIO.

The strategy will initially be made available through separately managed accounts (SMA), unified managed accounts (UMA), and model delivery. This strategy rounds out Newfound's product line-up, including Newfound Risk Managed Global Sectors, Newfound Multi-Asset Income and Newfound Total Return.

Advisors interested in learning more about the strategy or how they can access it should contact John Mannix at 617-531-9773 or at jmannix@thinknewfound.com.

About Newfound Research LLC

Newfound is Boston-based registered investment adviser that designs and delivers quantitatively-enabled, tactical investment strategies. We balance a disciplined, research-driven approach with prudent strategy design to deliver intuitive, repeatable results. Newfound's strategies strive to solve an identifiable investment problem and are distinguished by three qualities: a simple objective, a consistent process, and a thoughtful design. For more information about Newfound, visit www.thinknewfound.com.

Contact Information

  • Media Contact Information:
    Tom Rosedale
    617-531-9773
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