DAY HAGAN GLOBAL TACTICAL ALLOCATION STRATEGY
A DISCIPLINED, TIME-TESTED APPROACH TO INVESTING
Day Hagan Asset Management www.DayHagan.com and www.DHFunds.com utilizes a quantitative framework to define asset allocation. Our proprietary models incorporate indicators and model composites developed in conjunction with Ned Davis Research. Day Hagan’s work mathematically evaluates business conditions, fundamentals, price-trends, sentiment, economic trends and valuation to determine the most attractive asset classes. Our quantitative models interpret these ever-changing market conditions and adjust the portfolio in accordance with the message of the models. The objective is to overweight areas with the greatest probability of success and underweight areas of weakness.
Day Hagan believes that successful investing is a disciplined process of:
- Understanding the markets quantitatively
- Determining the appropriate mix of assets given this data
- Allocating assets accordingly
The models seek to provide the flexibility to seize opportunities in the marketplace in a rational, model-based, unemotional manner. The first and most important decision is the allocation to stocks versus bonds. The allocation is further refined through exposure to U.S. Equity Styles and Classes, International Equities, Fixed Income Sectors, Precious Metals, Real Estate, Commodities and Currencies. The strategy is implemented by utilizing Exchange Traded Funds (ETFs).
Being prepared for all market cycles, and consistently adjusting the portfolio to reflect risk versus reward opportunities.
Successful investing is a disciplined process of understanding the markets, and determining the mix of assets that will work best at a given time and allocating assets accordingly. Our models search for confirmation. When many diverse indicators are all providing a similar message, the probability of success is much higher. The models’ weight-of-the-evidence approach provides a historically-based perspective on current risks and reward. Of course, past performance does not guarantee future success and as with any strategy, there is no guarantee that the investment will achieve its goal.
DONALD L. HAGAN, CFA
Don began his career in 1988 with Ned Davis Research and became Chief Sector Analyst and editor of several publications. He was then named Director of Research and Portfolio Manager for SCI Capital Management in 1996. SCI was acquired by Wells Fargo in 2001, and Don became a member of the Wells Fargo PCS National Investment Management Committee. He has been a CFA charter holder since 1994.
Art began his career in 1983 as a technical analyst/option strategist with Wheat First Securities. In 1997, he became Chief Technical Analyst for Ferris, Baker Watts, Inc. In 2006, he became Chief Market Technician for Raymond James & Associates, having started there in 2001. He has been a frequent guest lecturer at Loyola College, and Shiller Int’l University (Florida campus).
Art’s career began in 1984 with Dean Witter Reynolds. In 1987, he joined E.F. Hutton /Shearson Lehman Brothers, and in 1993 joined PaineWebber/UBS as First Vice President of Investments. In 1999, Art began his association with Engagement Systems as an investor and owner. Art contributed to the company’s development of their “Skill Weighted Portfolio Methodology” which emphasized index funds and ETFs due to their inherent market efficiencies.
Glossary and Disclosures Glossary
Risk Premium – expected return of risk asset – return of risk free asset; U.S. dollar index – value of U.S. dollar to basket of foreign currencies; Euro Yield Spreads – interest rate differential between U.S. bonds and euro bonds; Relative Forward Price/Cash Flow ratios – relative value of next 12 months projected cash flows between two asset classes. Investing necessarily involves risk, including possible loss of principal. There is no assurance that the strategy will achieve its investment objectives. ETF’s are subject to specific risks, depending on the nature of the underlying strategy of the fund. These risks could include liquidity risk, sector risk, as well as risks associated with fixed income securities, real estate investments and commodities, to name a few. Investments in underlying funds that own small and mid-capitalization companies may be more vulnerable than larger, more established organizations. Increased portfolio turnover may result in higher brokerage commissions, dealer mark-ups and other transaction costs and may result in taxable capital gains. Past performance is no guarantee of future results.