Strategy

As markets evolve over time, the fundamentals of active management continue to be a vital asset management tool for both institutional and individual investors. These fundamentals allow investors to seek profitable opportunities in up markets and more importantly to seek defensive positions during down markets. We created RESQ funds to help investors capitalize on the modernization of these fundamentals.

The use of quantitative algorithms allows RESQ Funds to potentially provide superior risk adjusted returns for investors. By applying the power of statistical probabilities and mathematical precision, RESQ’s advanced modeling system makes trades based on relevant market pricing. RESQ takes the emotion completely out of the equation.

The RESQ quantitative process is disciplined. The system tracks hundreds of security price movements and looks for advantageous opportunities. Each signal generated from the RESQ process is based on how the price movement of each investment reacts during market cycles. RESQ believes the financial markets are efficient and thus our models seek to make decisions based on what is working.

There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses.

Approach

RESQ employs a disciplined quantitative approach that retains the ultimate flexibility to “go anywhere” in the investment world. The process eliminates the need for predictions. It provides for a responsive approach that aims to capture upside, while potentially protecting downside. The funds are designed as “all weather” investment vehicles, able to handle a variety of market conditions.

Domestic Equity

  • All Market Capitalization Sizes
  • All Value, Blend, Growth Styles
  • Consumer Discretionary
  • Consumer Staples
  • Technology
  • Financials
  • Health Care
  • Energy
  • Industrials
  • Materials
  • Utilities
  • Telecom

Fixed Income

  • Mortgage Backed Securities
  • Intermediate Term Bonds
  • Emerging Market Debt
  • High Quality Bonds
  • Investment Grade Bonds
  • Convertible Bonds
  • Multi-Sector Bonds
  • World Bonds
  • High Yield
  • Corporate Bonds
  • Municipal Bonds
  • Treasuries
  • TIPS

Global Equity

  • Europe
  • Canada
  • China
  • Pacific Ex-Japan
  • Emerging Markets
  • Latin America

Alternatives

  • Real Estate
  • Preferreds
  • Commodities
  • Precious Metals
  • Balanced Funds
  • Equity Income Funds
  • Master Limited Partnerships

The asset classes are presented to illustrate examples of the securities that the fund has bought and the diversity of areas in which the funds may invest, and may not be representative of the fund’s current or future investments. Portfolio holdings are subject to change and should not be considered investment advice.

ModelingProcess

The RESQ investment process utilizes a highly disciplined process to determine the composition of its mutual funds. The logic-based model utilizes the most recent publicly disclosed financial and market information which is then filtered into its proprietary models and statistical forecasting techniques.

RESQ process involves four layers of analysis in its portfolio composition:

  • 1

    Asset Class/ETF Analysis

    The securities analyzed inside the Quantitative model are first selected by the RESQ Management Team. The Team uses a bottom-up fundamental approach to its selection process. The potential asset classes provide diversification and the ability to "Go Anywhere" looking for price appreciation. This process will allow the Mutual funds to be as dynamic as possible, with the ability to target any assets classes that may be working at any given time period.

  • 2

    Selecting Positions

    RESQ uses a multi-factor selection process to rank security selections in order of attractiveness. The Model’s process incorporates a handful of technical indicators to analyze securities based on current prices, and other statistical performance. RESQ wants to subtract the noise and focus on what the market is telling us through price performance of each security. Each security is isolated and evaluated separately based on price movements over various time periods. This process is constantly repeated to identify newly dominant asset classes. Finally, we use a systematic trading approach to balance opportunity cost against market impact.

  • 3

    Varied Hold Time

    Each model has a specific hold time that determines how long it will hold the investment. Hold times are specific to each strategy based upon the risk profile of the fund. Once the hold time has concluded, the Quant model will begin analysis for a new position. If the current positions are still ranked highest at the end of an investment hold period, these hold positions will remain in the portfolio.

  • 4

    Volatility Indicator

    A volatility indicator will be use to determine market direction. This indicator will determine the sensitivity of the portfolio's positions in relation to cash. Once the portfolio position has moved to cash it will continue to reevaluate the positions on a daily basis until another position has a better probability to outperform cash over the specific hold period.

Fund Snapshot

  • Quantitative investment process
  • Tactical Strategy
  • Pursues active risk controls
  • Sector diversification
  • Flexible investment mandate
  • Defensive in bear markets
  • Responsive to market changes
  • Inception Date 12/20/13
  • Dividends Paid Monthly

Portfolio

  • Tested Algorithms
  • 100+ Overall Investment Choices
  • Diversified and Uncorrelated Assets
  • Ability to hold 100% Cash
  • Ability to "Go Anywhere"

Literature