Stoken Asset Management

Tactical Adaptive

Managed by Stoken Asset Management
ActiveAcross a whole market cycle

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.

Portfolio risk score
Strategy ETFs / Funds
Management fee 0.75%
Min investment $500
Performance
Commentary

Performance

Last 30 days -0.2%
Last 90 days 2.5%
Last 365 days 8.9%
Since inception (annualized) 9.6%
2022 (YTD) 4.2%
2021 7.0%
2020 3.7%
2019 16.7%

Risk metrics (last 365 days)

Volatility 9.0%
Sharpe ratio 0.87
Sortino ratio 1.09
Maximum drawdown -5.2%
Value-at-risk (95%, 1 week) -2.1%

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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.

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.

Stoken Asset Management

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.

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 December 24, 2018, 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.

Important information
  1. 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”.
  2. 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.
  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 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. Transaction history is available upon request. Portfolio classifications are provided by Interactive Advisors, and are intended to serve as a general guide.
  10. 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.

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