Identifying and Capturing Trends
Kaliber’s market model monitors the risk reward profile of the market to identify trends and monitor trend strength. The model seeks to capture 80% of the trend movement and avoid market tops and bottoms.
Positioning for High Probability Outcomes
Kaliber takes positions in growth assets when the outlook is favorable and defensive assets when the outlook is unfavorable.
Dynamic Asset Allocation
Kaliber selects assets based on their relative strength to the benchmark S&P 500 index and sector rotation screens that quantify momentum characteristics associated with future market leadership. This allows Kaliber to focus on the most attractive market sectors, regions of the globe, individual countries and assets classes.
See Kaliber’s Investment Process below for a more visual representation of our strategy.
Diversification across multiple themes and asset classes using ETFs increases the probability of capturing upside in themes that become market leading trends. ETFs themselves offer a diversification benefit as sector ETFs are composed of baskets of many companies, this results in less exposure to volatility associated with the earnings reports of an individual company.
KCM portfolios are long only, using highly liquid exchange traded funds (ETFs) that mirror, for example, major market indexes, market sectors, industries, commodities or bonds. In limited circumstances, such as sustained market downturns, portfolios can take small “short” positions against the market by opening a long position in an inverse ETF that increases in price as the market continues to go down.
Kaliber’s Investment Process
Portfolio construction to meet growth objectives
- Moderate – Allocates between conservative and lower beta, growth assets
- Growth – Allocates between conservative and higher beta growth assets
- Aggressive – Allocates between conservative and high beta growth assets
ETFs commonly used in portfolio construction are listed by beta for example only and are not limiting: