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