Adaptive Asset Allocation

Sizemore Capital

The Adaptive Asset Allocation portfolio seeks to profit from a dynamic, rules-based asset allocation that adapts to changing market conditions by investing across minimally-correlated asset classes and adjusting asset class weightings based on volatility. The objective is to achieve the long-term returns of the respective asset classes while minimizing portfolio drawdowns.

Investment methodology

Research

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The Adaptive Asset Allocation portfolio is based on decades of research on the construction of efficient portfolios and on extensive back testing and modeling. It builds on the principles of risk parity and the permanent portfolio with a goal of generating superior risk-adjusted returns.

Approach

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The portfolio manager seeks to profit from a dynamic, rules-based asset allocation that adapts to changing market conditions. Using the principles of risk parity and the "permanent portfolio," the strategy encompasses the major investable asset classes, including large and mid-cap U.S. equities, fixed income, real estate and gold. The portfolio is rebalanced based on market and asset-class-specific volatility, changing correlations between asset classes, and relative performance and weightings of the respective asset classes. The manager may additionally incorporate a proprietary market risk model to manage market exposure and further reduce risk. The strategy is generally implemented via liquid, traded ETFs, though excess liquidity may be invested in U.S. Treasuries or other investment-grade-rated fixed-income securities.

Allocation discipline

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The strategy encompasses the major investable asset classes, including large and mid-cap U.S. equities, fixed income, real estate and gold. The strategy primarily uses ETFs to minimize trading cost. Equities will generally comprise around 30% of the portfolio, gold and commodities will generally comprise 7.5% of the portfolio, real estate will generally comprise around 7.5% of the portfolio and fixed income and cash will comprise the remaining 55%. The portfolio will generally hold 8-10 positions. These weightings may vary over time based on changes in asset-class-specific volatility and the correlation between asset classes.

Sell discipline

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Rebalancing is a critical aspect of the strategy. The portfolio will be rebalanced at a minimum annually and will be rebalanced more frequently when asset classes drift outside of our tolerance bands. Outside of regular rebalancing, securities may be sold or replaced when a superior security covering the same asset class is found or if, due to our risk management process, we make a tactical decision to exit an asset class.

Exceptions

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Strategy

ETFs / Funds

Inception

Jul 16, 2020

Annualized return (inception)

5.20%

Portfolio risk score

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Capital growth plus with a more complex portfolio or higher risk profile than broad equity markets. Investing in equities and concentrated portfolios and prepared to accept fluctuation in portfolio value.

Management fee

0.75%

Minimum investment

$5,000

Investment (below min)

Annual costs

Performance Chart

Metrics

Last 30 days	1.6%
Last 90 days	6.5%
Last 365 days	11.7%
Last 5 years	31.4%
Since inception (Jul 16, 2020)	31.1%
Since inception (annualized)	5.2%
2025 (YTD)	12.5%
2024	9.8%
2023	7.7%
2022	-14.2%
2021	8.6%

Volatility	9.2%
Sharpe ratio	0.84
Sortino ratio	1.12
Maximum drawdown Shows the largest percentage drop in portfolio value from a peak to a subsequent low point over a specific time period, representing your worst-case scenario loss had you invested at the worst possible time and held through the decline. However, this metric is incomplete because it only shows the single worst loss without revealing how often other drawdowns occurred, their frequency, how long losses took to recover, or whether the portfolio ever fully recovered at all.	-9.0%
Value-at-risk (95%, 1 week)	-2.1%

Manager

Sizemore Capital Management LLC is a registered investment advisory firm located in Dallas, Texas.

Charles Lewis Sizemore, CFA is the founder and Chief Investment Officer of the firm.

Investment process

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Disclosures

Past performance is no guarantee of future results, and all investments, including those in this portfolio, involve the risk of loss, including loss of principal and a reduction in earnings.

This portfolio was launched on Interactive Advisors on July 16, 2020, when clients were able to start investing in it. All performance information on this page is actual performance of the Portfolio Manager’s account and presented “net of fees”. The actual performance chart is provided for informational purposes only, and should not be used as the basis for making an investment decision. Actual client returns will differ. All Portfolio Manager information including personal data, profiles, and strategies has been provided by the Portfolio Manager. Interactive Advisors makes no representation or warranty of its accuracy, completeness or relevance and it does not represent the opinions of Interactive Advisors.

All performance information on this page is based on the performance of the Portfolio Manager’s account, using the manager’s own funds. Performance of the Portfolio Manager's account is calculated by Interactive Advisors on a daily time-weighted basis, including cash, dividends and earnings distributions and reflects the deduction of broker commissions (when commissions were charged). Manager returns include trades and positions that fail Interactive Advisors' trading rules, as a result, actual client returns will differ. Interactive Advisors’ advisory fees are simulated and applied retroactively to present the portfolio return “net-of-fees”.

In addition to Interactive Advisors’ management fees, clients will also be charged management fees and other expenses (custodian fees, brokerage commissions, and legal and accounting fees) by ETF issuers if the portfolio contains ETFs.

Important information

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We rely on mathematical formulas, computer programs, and pricing information from third-party vendors (e.g., Refinitiv Worldscope database) to provide these returns. Neither Interactive Advisors nor any of its data or content providers shall be liable for any errors in this information or any actions taken by you in reliance upon this information.
None of the performance information displayed on this page is based on the actual performance of any Interactive Advisors client account investing in this portfolio. The performance in an Interactive Advisors client account invested in this portfolio may differ (i.e., be lower or higher) from the performance of the account managing this portfolio and portrayed on this page based on a variety of factors, such as trading restrictions imposed by the client (resulting in different account holdings), time of initial investment, amount of investment, frequency and size of cash flows in and out of the client account, applicable brokerage commissions (when commissions were charged), and different corporate actions. Clients investing in this portfolio may view the actual performance of their investment in this portfolio by logging into their Interactive Advisors account and reviewing their customized dashboard.
Not all transactions underlying the performance information displayed on this page will appear in accounts due to Interactive Advisors’ trading rules and individual client constraints. Eligibility of these securities is monitored periodically, and may change over time. Actual client investment holdings may vary.
Clients may restrict any of the securities traded in their account, but should note that any restrictions they place on their investments could affect the performance of their account leading it to perform differently, worse or better, than (a) the above-portrayed account managing the portfolio or (b) other client accounts invested in the same portfolio.
All graph data is as of the end of day for the referenced period, unless otherwise specified. The investment minimum is the minimum investment required to follow a particular portfolio. The minimum amount is determined by Interactive Advisors, based on the characteristics of the underlying portfolio. It should not be considered as specific investment advice for your investment situation.
Interactive Advisors’ management of this portfolio and some of the information on this page relies on data from third-party sources, including third parties providing the model portfolio strategy or ESG score information, as applicable. While Interactive Advisors believes that the data it uses in its investment management processes is obtained from reliable sources, it did not audit or validate this data, which may contain errors.
Benchmark returns displayed in the performance graph upon selection are provided for illustrative purposes only and have been calculated by Interactive Advisors using daily adjusted close prices and include dividend income. Benchmarks available for display are selected based on overall strategy, trade history and other criteria. If you choose to display benchmark returns in the performance graph, be mindful of the fact that the performance, composition and volatility of the portfolio could vary significantly from that of the benchmark(s) available for display. There can be no assurance that a benchmark will remain appropriate over time and Interactive Advisors will periodically review the benchmark’s appropriateness and decide to use other benchmarks if appropriate. More information here. Interactive Advisors uses only investable ETFs as benchmarks. Investable ETF returns reflect the deduction of (i.e., are net of) management fees, transaction costs and expenses.
Transaction history is available upon request. Portfolio classifications are provided by Interactive Advisors, and are intended to serve as a general guide.

Adaptive Asset Allocation

Investment methodology

Performance Chart

Metrics

Performance info

Risk metrics (last 365 days) info

Manager

Sizemore Capital

Get invested

Disclosures