Philosophy


At Columbus Macro our philosophy is:

    • top-down (focus on region, country, sector, industry, style)
    • global (exposure to U.S., international developed, and emerging assets)
    • tactical (active tilts with intermediate-to-long term time horizons)

Top-down (focus on region, country, sector, industry, style)

Our macro-oriented allocation approach is consistent with academic research indicating that principal inefficiencies and mispricings occur at the asset class level (Brinson, Hood, Beebower,1986).  We therefore focus our efforts on the highest levels of the investment hierarchy – seeking alpha opportunities across region, country, sector, industry, style, or market capitalization specific instruments. In the case of a select few asset classes, individual company selection can also be introduced to enhance the portfolio construction process.

Global (exposure to U.S., international developed, and emerging assets)

For us, global is a focus rather than afterthought.  Global diversification has historically lowered the volatility of portfolio returns and provided investors with access to the bulk of the world’s current and future economic growth.  Therefore, each of our global strategies provides exposure to U.S., international developed, and emerging assets with active tilts to areas of greatest perceived opportunity. 

Tactical (active tilts with intermediate-to-long term time horizons)

We contend that capitalizing on these global opportunities requires a more active, tactical management style than strategic, static approaches that work best for highly efficient asset classes.  Since our process seeks to identify themes, trends and cycle shifts that can persist for months or even years, we make tactical portfolio adjustments with an intermediate to long-term time horizon rather than rely on short-term trading or market timing.  By implementing deliberate overweight and underweight decisions across or within global asset classes, our skill-based strategies assume active risk against their benchmarks.

Finally, the emergence of exchange trade fund (ETFs) over the past decade has greatly reduced the operational challenges and costs associated with gaining targeted global exposure.  With the proliferation of broker/dealers waiving ETF transaction fees, in many cases the trading costs associated with actively-managed strategies has also been reduced.  As a result, we construct several separately-managed account ETF strategies including all-in-one multi-asset global portfolios or targeted global core equity, global core bond, or global core income solutions.  Our ETF screening process prioritizes instruments based on liquidity and cost. We are provider-agnostic and do not use proprietary investment vehicles or cross-sell other financial products.


Investment Process