Equium Capital

Global Tactical Allocation Strategy

Global Tactical Allocation Strategy

Strategy Objective

The Equium Global Tactical Allocation strategy is a conservative “core” mandate incorporating the benefits of both equities and bonds. Offered to clients through segregated accounts, the primary aim of this strategy is to offer enhanced downside protection while still participating during periods of market strength. Targeting average annual returns of 7-9% over the cycle, this strategy is ideal for preserving and growing the part of your wealth you don’t want to lose sleep over.


Investment Philosophy

Taking the best elements of traditional asset management and combining them with global macro strategy and tactical portfolio positioning, we avoid the trappings of constrained benchmarks and dogmatic thinking. This innovative approach, consistently applied with our core principles, allows us to invest only when and where is most appropriate to achieve our clients' goals.

Speaking technically, the foundation of our fundamental approach lies in the long history of value and momentum acting as significant contributing factors to alpha generation. Critically, we combine this bottom-up strategy with a disciplined process of top-down technical rules and risk mitigation techniques. The combination of these two approaches has historically reduced downside volatility and enhanced capital preservation.

Value and momentum effects offer higher returns and lower risk when used in combination rather than independently, primarily because value and momentum tend to operate over different time horizons.
— Haghani and Dewwy – (2016) - A Case Study for Using Value and Momentum at the Asset Class Level

Investment Process

The investment process behind Equium Capital’s consistent returns represents the accumulation and refinement of the founders’ extensive experience around the globe.  Owing to the increasingly volatile and interconnected nature of global markets, we rely on a combination of top-down technical analysis and bottom-up fundamental research in order to best protect and grow wealth through the cycle.

Our ability to shift portfolios from a momentum bias to cash and then from cash to a value bias over the investment cycle should add significant value for clients.  Importantly, this tactical approach does not imply fluidity of process, in fact quite the opposite.  In order to reposition portfolios on a timely basis to protect on the downside as well as to capture upside, it is imperative that decision-making be deeply rooted in a consistent, unemotional process.

Technical analysis meets fundamental research

Using multiple lenses to assess investments and the market environment helps portfolios participate during market upswings while also better protecting client capital during market declines. Moreover, any sustainable investment process must be self-reinforcing to maintain consistency and discipline of process. In other words, it starts where it ends.


1. Global Insights & Portfolio Monitoring

At Equium Capital, that starting and ending point is monitoring risks to the portfolio from global market developments. Corporate news flow, economic and political developments and monetary and fiscal policy shifts are all constantly monitored and scrutinized in order to stay on top of investment risks and opportunities in real time.

2. Tactical Asset Allocation

Understanding that all investors, even the professionals, are prone to bias and subjectivity when digesting news, it is critical to use an unemotional lens to compliment any qualitative review. We use technical analysis to remove emotion from the asset allocation decision and to screen portfolio positions for early warning signs of trouble.

3. Fundamental Research

Combining this technical top-down perspective on countries, sectors and companies with a fundamentally driven bottom-up research opinion offers the fullest view on investment opportunities around the globe. This hybrid approach reflects industry best practice and has been employed by members of the investment team to consistently outperform benchmarks over multiple market cycles.

4. Portfolio Construction

Using both technical and fundamental inputs and carefully balancing risks and opportunities, the team determines the best asset allocation for the prevailing market environment. With allocation parameters in hand, security selection follows, driven chiefly by fundamental research. Finally, rebalanced portfolios are monitored for deviations from expected behavior as news and markets develop.

Strategy Resources
Overview Presentation April 2019 Download
Quarterly Fund Fact Sheet* March 2019 Contact Us
* The Equium Global Tactical Allocation Fund was closed on March 29, 2019; however, the strategy continues to be offered to new and excising clients through segregated accounts.

Please contact us to request details about investing in a segregated account with Equium Capital.

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