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
- 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
Resources and Materials
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