Satellite Portfolios

We offer a suite of satellite strategies that seek to provide additional levels of active risk management and diversification to strategic core holdings:

Columbus Macro Global Multi-Asset is a flexible, go-anywhere strategy that utilizes a disciplined process to increase or decrease exposure in response to changing market risk environments.  It is designed to complement a long-term, diversified, strategic core portfolio.  Since our Global Multi-Asset seeks to adapt to both up and down markets, it can also be used as a risk management overlay for financial intermediaries who construct portfolios using their own asset allocation approach.

The strategy relies on shorter-term proprietary sentiment and momentum indicators to gauge asset class trend and determine when it is appropriate to broadly emphasize offense (pursue opportunities) or defense (provide protection).   In either environment, the Global Multi-Asset can employ a more granular implementation of themes at the sector, industry, or country level than broader core allocations.  Generally 5-7 positions are opportunistically held at any point in time with an emphasis on being nearly fully exposed to equities when our tactical model is bullish and defensive when conditions favor a “risk-off" environment.

Columbus Macro Satellite Liquid Alternatives seeks to generate consistent risk-adjusted returns over a variety of market cycles through the use of a variety of alternative investments.  The strategy is intended to complement traditional assets that make up a strategic core portfolio by introducing an additional level of diversification and risk management to dampen overall volatility. It provides broad exposure to alternative asset classes that have historically demonstrated low correlations with stocks and bonds during periods of market stress.

Our strategy relies exclusively on alternative instruments that offer daily liquidity allowing the strategy to be readily adjusted in response to current market risks and opportunities.  This enables us to employ active management of alternative asset classes.  Alternative mutual funds and exchange traded funds (ETFs) offer greater transparency, reduced fee structures, and low investment minimums compared to traditional illiquid alternative investment vehicles. Potential asset class exposures may include managed futures, long/short, master limited partnerships (MLPs), and merger arbitrage.

Columbus Macro Satellite Risk Managed U.S. Equity  provides targeted satellite exposure to the U.S. equity asset class.  Risk Managed U.S. Equity seeks to outperform the S&P 500 index over a complete market cycle with a bias toward downside risk management. Because of its risk management capabilities, the strategy is designed to complement long-only core equity holdings.  Individual securities are selected following a growth at a reasonable price (GARP) approach, using rigorous methods for forensic analysis of financial statements in conjunction with peer comparisons.  We employ a proprietary quantitative model to rank stocks at the sector and sub-sector level based on valuation, earnings quality, and fundamental metrics.  Sector exposure is carefully monitored for concentration risk and adjusted to facilitate further diversification.

Overall market exposure can be tilted using exchange traded funds (ETFs) and mutual funds which move inversely to the U.S. equity market and thereby respond to changing market conditions.  By virtue of the flexibility to tactically hedge some portion of the portfolio, the strategy offers financial intermediaries a way to maintain exposure to the U.S. equity market while potentially stepping down the risk spectrum.  

There is no guarantee that any strategy will be successful in reaching its objectives, please consult disclosures for additional Information.