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Sector Logic’s disciplined investment approach strives
to achieve superior investment returns with lower than
average risk exposure. By systematically increasing
exposure to the most undervalued asset class, with
the highest potential return, we seek to significantly
increase your potential returns.
Sector Logic strives to enhance returns by successfully
pinpointing attractive investment opportunities,
and identifying untimely ones to avoid. We seek to
accomplish this objective by adding value in each of
the three key elements of investment management;
asset allocation, stock and bond sector composition
and individual security selection. |
To construct each client’s portfolio, Sector Logic
first creates overall asset allocation strategy based
on expected asset class returns, probability of out-performance
and risk measurements. Tactical decisions
to increase or decrease stock, bond or cash exposure,
relative to a target, are driven by our proprietary
models. Our systematic valuation based approach is
designed to identify compelling investment situations
that are likely to enhance expected returns or reduce
downside risks. |
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Sector Logic's asset allocation methodology is based
on research on Modern Portfolio Theory and Behavioral Finance. Sector Logic analyzes a variety of factors,
including historical asset class performance,
diversification measurement, risk/return relationships,
correlation measurements and more to develop an
overall allocation between stocks, bonds and cash. |
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Sector Logic seeks to reduce portfolio risk through
tactical asset allocation. First, by combining assets that
do not move together, it is possible to reduce risk without
reducing returns. Second, by systematically reducing
exposure to the most overvalued asset class, with the
lowest potential return, we seek to significantly lower
risk while increasing our potential returns. Third, our
disciplined method effectively reduces the investment
risk associated with emotional biases that adversely
affect decision-making. |