Blog ||Sector Select

Sector Select

Sector Select (SS) is a tactical, rules-based strategy that identifies and allocates to momentum leaders among primary sectors of the S&P 500. By eliminating exposure to the bottom ranked sectors, the multifactor model aims for minimized risk while remaining fully invested.

Objective: The strategy aims to provide concentrated exposure to the most compelling, momentum-driven sector stories in US large cap equity.

Primary asset class: US large cap equity

Tactical ranges:

  • US Equity: 0% -100%
    • Sector A: 0% – 48%
    • Sector B: 0% – 14%
    • Sector C: 0% – 12%
    • Sector D: 0% – 12%
    • Sector E: 0% – 12% 

Target allocation: 100% US equity sectors

Portfolio construction ideas:

  • Alternative to pure value holdings
  • US equity component of listed alternatives portfolio
  • Completion portfolio for core equity: equal-weighted sector exposure providing style and size diversification relative to cap-weighted



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