Stoken Tactical Adaptive Strategy

Managed by Stoken Asset Management

0.8% Last 30 days 4.3% Last 90 days - Last 365 days - Sharpe Ratio - Max Drawdown

Stoken Tactical Adaptive Strategy

Managed by Stoken Asset Management

0.8% Last 30 days 4.3% Last 90 days - Last 365 days - Sharpe Ratio - Max Drawdown
Risk score
Strategy ETFs / Funds
AUM fee 0.75%
Requirements
• Investment minimum: $10,000
or Sign up to invest
STA employs an enhanced version of the Active Combined Asset strategy outlined in Dick Stoken’s book, Survival of the Fittest for Investors. This tactical asset allocation strategy is designed to perform well during all market and geopolitical environments, and to protect investors from significant capital depletion during sustained bear markets. STA’s goal is to preserve and grow capital by outperforming the S&P 500 over complete market cycles, while producing lower-than-market risk. Instead of traditional buy-and-hold portfolios with set allocations, STA attempts to adapt and react to markets as they evolve. The strategy is designed to recognize changing market conditions early, find trends as they develop, and react by shifting asset allocations to be as prepared as possible for what lies ahead.

Research

Free markets use the same algorithm as evolution. They can be viewed as complex adaptive systems that are governed by trends. Using complex adaptive systems as a framework, STA utilizes agent-based modeling to find market-based patterns. The strategy uses three key principles of complex adaptive systems: Variation – By including four diverse asset classes, three that are risky and one that is defensive, to give investors a greater chance of having an asset class that “fits” the then-current environment Fluctuation – By applying an algorithm designed to best protect investors from large capital depletions during sustained bear markets by defensively moving out of risky assets Punctuated Equilibrium – By using a methodology to take advantage of profit opportunities during periods of relative order and to gainfully navigate through periods of extreme chaos and disruption

Approach

STA provides low correlation to traditional investment strategies and offers returns independent of market direction. Decisions are made using a systematic model-based approach and are not based on current market noise, emotions or instincts to follow the crowd. STA has the flexibility to move into mostly defensive assets (bond ETFs) when risk is perceived to be at its highest, enabling the portfolio to avoid significant losses. STA utilizes low-fee ETFs to access asset classes, with the goal of minimizing investment costs and maximizing returns. The investment strategy is grounded in tested theory and real-world experience, with proven research and analytical rigor forming the foundation of our approach. We practice disciplined investment and portfolio implementation, applying a consistent, unemotional and systematic process.

Allocation discipline

STA is a long-only, tactical strategy that uses ETFs to gain exposures to four distinct asset classes: Equities, Real Estate, Gold and US Treasuries (long and short duration). Allocations to each risky asset class range from 0% to 60%, depending on their performance and relative strength, as determined by a quantitative, model-based algorithm. The algorithm uses price channel breakouts to choose between pairs of opposing risk and defensive asset classes. Core ETFs that may be used in the strategy include: SPY, VNQ, GLD, SHY, IEI, EGG, TLT, and TIP. Additional ETFs that represent up-and-coming global markets, such as China, will be considered based on currency, political and systemic risk levels. Marginal positions in commodity and/or smart beta ETFs may be used to generate additional alpha. The strategy trades less than five times per year on average.

Sell discipline

Long positions in risk assets are sold according to STA’s algorithm, signaled when an index is trading below its bottom channel threshold. The portfolio is rebalanced during allocation changes.

All performance information on this page is based on the performance of the Portfolio Manager’s account. Client performance may differ. This information was calculated on April 23, 2019.

Daily returns
Performance
iShares Core Conservative Allocation ETF
S&P 500 ETF
Manager (net of fees)
Last 30 days 0.8% 4.9% 1.4%
Last 90 days 4.3% 11.7% 5.0%
Last 365 Days   12.0% 4.9%
Since inception 6.5% 25.5% 8.4%
2019 (YTD) 5.0% 17.7% 6.8%
Holdings
Security Symbol Allocation
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Transactions
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Portfolio updates
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Blog posts
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About Stoken Asset Management

Stoken Asset Management is an investment advisor providing quantitative asset management services to individuals and institutions. The firm believes that markets are difficult, if not impossible, to predict and that diversification is no longer enough to manage portfolio risk. Our view is that asset classes should be treated independently, allowing for material shifts in asset allocation as market patterns emerge. Stoken Asset Management was founded in 2013 by Deidre Stoken McClurg. She brings over 20 years of finance and investment experience to the firm. Prior to founding the firm, Deidre worked for JPMorgan’s Private Bank and William O’Neil & Co. Deidre is a Certified Financial Planner and Certified Public Accountant. She earned a BA from the University of Southern California and an MBA from Northwestern University’s Kellogg School of Management.

Important Information

  1. 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.
  2. All performance information on this page is based on the performance of the Portfolio Manager’s account, using the manager’s own funds. Portfolio Manager’s pre-Interactive Advisors performance information may include performance of non-Interactive Advisors client accounts. 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. 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".
  3. 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 Portfolio Manager’s account performance based on any 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, 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.
  4. 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.
  5. The performance charts are provided for informational purposes only, and should not be used as the basis for making an investment decision. We rely on mathematical formulas, computer programs, and pricing information from third-party vendors 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.
  6. Benchmark returns displayed have been calculated by Interactive Advisors using daily adjusted close prices and include dividend income. More information here. For certain portfolios Interactive Advisors uses an index as a benchmark, while for others it uses an investable exchange traded fund (ETF) as a benchmark. Index returns do not reflect the deduction of any management fees, transaction costs or expenses. Individuals cannot invest directly in an index. Investable ETF returns reflect the deduction of (i.e., are net of) management fees, transaction costs and expenses.
  7. All Portfolio Manager information including personal data, profiles, strategies, monthly investment reports, and historical results outside of Interactive Advisors 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. Transaction history of Portfolio Managers is available upon request. Portfolio classifications are provided by Interactive Advisors, and are intended to serve as a general guide.
  8. Not all transactions listed 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.
  9. This portfolio was launched on Interactive Advisors on December 24, 2018.