Philosophy
CAMS brings advanced computer-aided asset management services, once reserved for large institutions and pensions, to the average investor. CAMS’ strategies operate by analyzing the price behavior, momentum and relative strength of securities to determine the area(s) of potential investment. We believe that active management aimed at minimizing risk while continually searching out growth opportunities in a systematic, unemotional investment process will outperform standard benchmarks over the long-term.
-
Since the traditional “Buy and Hold” strategy from the 1990’s has not been the best solution in the 2000’s, investors are recognizing the need for a more tactical approach to asset management
-
There are times to own stocks, bonds and every other asset class, including cash or money market
-
We believe that in order to reduce volatility, it is important to diversify across asset classes that perform well in varying economical environments
-
Our priority is seeking to grow assets through prudent management, while minimizing loss by actively managing downside risk
-
Our portfolios do not fit into a specific style box or category because the allocations change frequently, and sometimes significantly
-
The investment process produces low-volatility portfolios, with typical portfolio betas of 0.30 - 0.60, versus the S&P benchmark of 1.00
-
Based on the current market conditions, an investor’s account may be 100% invested in equities and 30 days later, could be 100% in bonds or cash, given their individual risk tolerance and portfolio selection
-
The allocation of assets becomes dynamic – changing in response to market conditions and potential opportunities for growth
-
The Cornerstone portfolio managers begin the investment process by building and back-testing investment models designed to generate trading signals
-
These models analyze 10-25 investment choices selected by the manager, to identify a security for investment
-
Funds are selected based on: sector correlation, price behavior, correlation to other investments in the group, etc.
-
Our research shows that by applying basic technical analysis to our model strategies and the investment choices, we can significantly reduce the drawdown experienced during periods of market decline
-
We find that we can lower the instance of quick market reversals or ‘whip-saws’ by applying the same technical indicators, thus increasing our percentage of profitable trades
