INVESTING BASED ON THE WEIGHT-OF-THE-EVIDENCE
Day Hagan Asset Management believes that successful investing is a disciplined process of understanding the markets, determining the mix of assets that will work best at a given point in the cycle and tactically allocating assets accordingly.
Day Hagan utilizes a quantitative, model-based framework to evaluate and measure the systematic and unsystematic, risk/reward probabilities in the marketplace. The models provide the flexibility to seize opportunities in the marketplace in a rational, model-based, unemotional manner.
Our proprietary models incorporate time-tested measures that mathematically evaluate a wide array of factors that have historically influenced market direction. The message of our models ultimately defines our portfolios’ asset allocation. This allows us to identify areas of strength for investment as well as areas of weakness that should be avoided.
The models are designed to seek confirmation. When many diverse indicators are all providing a similar message, the potential for success is much higher. Our models’ weight-of-the-evidence approach provides a historically-based perspective on current risks and rewards.
For more information, please visit Day Hagan Asset Management.
MAKING RISK MANAGEMENT PART OF EVERY ALLOCATION DECISION
The Day Hagan Tactical methodology utilizes a quantitative and tactical approach that Donald L. Hagan, CFA (the adviser’s co-founder and Chief Investment Strategist) originally developed in conjunction with Ned Davis Research.
The models have been designed to measure the levels of systematic and unsystematic risk vs. potential rewards that have been priced into different asset classes and securities. The risk/reward profiles are calculated for the global and U.S. broad asset classes as well as the sub-asset classes and sectors, including equity-focused, fixed income and alternative (non-correlated) assets.
The models incorporate time-tested indicators that mathematically evaluate a wide array of historically-based, economic trends, corporate fundamentals, price trends, business conditions, consumer and business sentiment and valuation to determine asset allocation. The objective is to overweight areas with the greatest probability of success and avoid areas of weakness.
The Day Hagan strategy interprets the ever-changing market conditions and consistently adjusts the portfolio to seize opportunities in the marketplace in a rational, unemotional manner based entirely on the weight-of-the-evidence.
Day Hagan believes that successful investing is a disciplined process of:
• Understanding the markets quantitatively
• Determining the appropriate mix of assets given this data
• Tactically allocating assets accordingly
• Does not rebalance to a fixed/static benchmark
• Cash is utilized as a defensive asset class