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Financial News ,Performance

Opportunity Knocks! (for Investors)

4Thought’s Opportunistic Systematic Investing strategy has actually made money for investors this year while the stocks markets are down. Take a look at the results and consider whether this approach might be right for you.

 

Want to give a portion of your investment portfolio the potential to systematically capitalize on volatility and downside risk?

Opportunity Knocks!

(for Investors)

The Coronavirus-related Bear Market and its ensuing volatility have exposed those strategies unprepared for such investing environments. If you've been disappointed by the performance of your investment portfolio through this crisis, then consider a Separately Managed Account (SMA) strategy based on Opportunistic Investing that's adaptable and dialed­ in to volatile markets.

4Thought Opportunistic Systematic Investing

OSI YTD Performance (as of 4/30/20): + 6.28% Net [ + 6.77% Gross]

S&P 500 TR Index YTD Performance (as of 4/30/20): - 9.29%

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While this short time period is certainly not enough information to make a decision, it's indicative of how this strategy is designed to perform in unfavorable market conditions relative to more traditional stock portfolios. If you're a long term investor, please contact us to discuss whether such an approach might be appropriate for a portion of your portfolio.


4Thought Opportunistic Systematic Investing SMA features:

  • Available at a wrap portfolio management fee of 0.55% (brokerage and custody included), with a minimum investment of only $500.00 (and $10,000.00 for IRAs)
  • A liquid, transparent, lower cost alternative to traditional hedge funds
  • Utilizes probability analysis algorithms and unconstrained tactical asset allocation
  • Low historical correlation to both stocks and bonds
  • Designed to capitalize on volatile markets and bear markets for long term investors
  • Provides an effective method­-diversifying complement to traditional strategic portfolios
Past performance is no guarantee of future results. Pure gross returns are shown as supplemental information and are stated gross of all fees and transaction costs; net returns are reduced by all fees and transaction costs incurred (actual fees are used). The short term performance information provided here is only intended to provide an example of how the strategy is intended to perform relative to the broader stock markets during volatile time periods such as this one. We strongly encourage you to review the long term performance and risk data related for the Opportunistic Systematic Investing strategy through multiple market environments to help gain an understanding before making any decisions with regards to your own portfolio.

4Thought Financial Group Inc. claims compliance with the Global Investment Performance Standards (GIPS®)*. Please click below to order our fully compliant GIPS performance disclosure presentation for required statistics and disclosure information.

 

View our GIPS Performance Presentation

 

Past performance is no guarantee of future results. Pure gross returns are shown as supplemental information and are stated gross of all fees and transaction costs; net returns are reduced by all fees and transaction costs incurred (actual fees are used). Returns are presented gross and net of fees and include the reinvestment of all income.

Investment advisory services and Separately Managed Accounts offered through 4Thought Financial Group Inc., an SEC Registered Investment Adviser. 4Thought Financial Group Inc. claims compliance with the Global Investment Performance Standards (GIPS®)*. The verification report is available upon request. For a list of composite descriptions or to obtain a fully compliant GIPS Performance Disclosure Presentation please email 4Thought at info@4tfg.com. The firm definition excludes any third party asset management programs over which 4Thought maintains oversight advisory agreements on behalf of its clients, any arrangements under which 4Thought provides recommendations for client self-implementation, and any assets under advisory but not under direct management (in which 4Thought provides allocation changes or trading signals to third party firms but does not take discretion over the trading of client accounts). The referenced composites include only discretionary accounts under management. Accounts enter each composite upon the first full month under management. Results are calculated internally by 4Thought and the firm is verified as compliant by a third party verification firm. Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.

All-­inclusive/Bundled/Wrap fee accounts pay a fee based on a percentage of assets under management. Other than brokerage commissions this fee includes investment management, portfolio monitoring, consulting services, and in some cases, custodial services. Wrap/Bundled fee accounts make up 100% of 4Thought's composites for all periods shown. Wrap fee schedules are provided by independent wrap sponsors and are available upon request from the respective wrap sponsor. The total wrap fee incurred by end­ user investors varies between 0.55% and 1.85%, depending on the wrap sponsor and any additional markup added by advisors serving the client.

Correlation data provided is calculated based on monthly gross returns for the time period referenced. Correlation measures the degree to which two returns series move together over time. A correlation of +1.00 represents perfect positive correlation, meaning that the returns have moved in exactly the same direction over time. A correlation of ­1.00 represents perfect negative correlation, meaning that the returns have moved in exactly the opposite direction over time. Low or negative correlation to other assets in a portfolio is generally considered a favorable attribute for the purposes of increasing overall portfolio diversity when considering a new asset or strategy for inclusion, provided that expected returns and volatility of the potential new asset are consistent with objectives.

Past performance is no guarantee of future results. The value of an investment may fall as well as rise. Investor principal is not guaranteed, and investors may not receive the full amount of their principal upon making withdrawals from their account if asset values have fallen. Investments in Separately Managed Accounts are not FDIC ­insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. Investors should carefully consider the investment objectives, risks, charges and expenses. This and other important information is contained in the composite description and 4Thought's Form CRS, Form ADV Part 2 and Wrap Fee Program Brochure, which can be obtained from 4tfg.com or by calling (516) 300­-1617, and should be read carefully before investing. The strategy(ies) referenced use investment techniques with risks that are different and in addition to the risks ordinarily associated with equity investments. Such techniques include active management risks, non­ diversified concentration risks, unconstrained asset allocation risks, high portfolio turnover risks, exchange traded fund risks, debt securities risks, currency risks, and foreign investment risks, which may increase volatility and may increase costs and lower performance.

Author: Jesse Mackey

Jesse Mackey is the Chief Investment Officer of 4Thought Financial Group, an SEC Registered Investment Adviser (RIA). As head of the firm's portfolio management operations, he provides investment planning and portfolio management expertise to aid affiliated financial advisors and partner firms in servicing their clients. He is also director of the economic theory, research, and publishing conducted at the firm. Jesse earned his MBA from Thunderbird School of Global Management in International Securities Investment, International Development and Entrepreneurship, and his Bachelor’s degree from Colgate University in Economics. He has more than 16 years of experience in the financial services industry. He holds the Series 66 Securities/Advisory license, and is also a licensed life and health insurance representative in several states.

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