Fed Focused® Strategy

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Strategy Description
Seeks superior long-term, risk-adjusted returns by investing in a concentrated portfolio of companies well positioned to capitalize on an expanding economy.

Investment Approach and Process
Our research on historical market advances shows that specific industries outperform the broad market during times of liquidity expansion. Specifically, during these times, aerospace, autos, electronics, technology, home builders and airlines experience strong relative performance.

We pay close attention to the monetary policies and the intent of the Federal Reserve Board and have developed a proprietary liquidity algorithm that is used to evaluate economic cycles. When conditions are not conducive for growth, we reduce our exposure to the companies in the portfolio and increase our cash position.

Process
Individual securities are selected through a fundamental process that evaluates the company’s leadership within its industry, balance sheet strength and historical performance in expanding markets.