Day Hagan/Ned Davis Research
Smart Sector® with Catastrophic Stop
Day Hagan/Ned Davis Research Smart Sector® with Catastrophic Stop
Symbol: SSUS
Smart Sector® with Catastrophic Stop
Day Hagan Asset Management (DH) developed this proactive, adaptive strategy in partnership with Ned Davis Research (NDR), a leading independent provider of global economic and financial analysis.
The Strategy Seeks To
Enhance returns over a buy-hold, equity benchmark by overweighting and underweighting S&P 500 sectors based on NDR’s proprietary sector model
Mitigate the effects of major market declines by reducing equity market exposure using NDR’s Catastrophic Stop model.
An Objective, Weight-Of-The-Evidence Approach
Sector Selection: Determine each sector’s probability of outperforming the S&P 500 total return index by combining sector-specific fundamental, technical, economic, and behavioral indicators
Catastrophic Stop: Identify periods of high risk for the broad U.S. equity market through time-tested indicators measuring breadth, trend, fundamentals, economics, interest rates, sentiment, and volatility
Managing Risk
The strategy remains fully invested unless the Catastrophic Stop model is triggered, whereupon the equity-invested position may be reduced to 50%
When the Catastrophic Stop model moves back to bullish, indicating lower risk, the strategy will reverse toward being fully invested.
Executive Team
Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended by the adviser) will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Changes in investment strategies, contributions, or withdrawals may materially alter the performance, strategy, and results of your portfolio. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client's investment portfolio. Economic factors, market conditions, and investment strategies will affect the performance of any portfolio, and there are no assurances that it will match or outperform any particular benchmark.
This model was developed in conjunction with Ned Davis Research.
Day Hagan Asset Management is registered as an investment adviser with the SEC and only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability. Asset allocation and diversification do not ensure or guarantee better performance and cannot eliminate the risk of investment losses.