Chapoquoit Dynamic Portfolios FAQs

“Offense sells tickets, but defense wins championships.” — Bear Bryant, University of Alabama

We offer a unique alternative investment strategy called Chapoquoit Dynamic Portfolios. See below the most frequently asked questions about these types of strategies:

What are Chapoquoit Dynamic Portfolios?
Chapoquoit Dynamic Portfolios are offered to investors as separately managed accounts. Chapoquoit employs a tactical and purely quantitative investment allocation strategy using a universe of equity, fixed income, and commodity Exchange Traded Funds. The allocations to these ETFs are driven by a number of important market and macroeconomic factors identified by our top down research process.

Using an almost 40 year data history, we have successfully researched the existence of cause and effect relationships between these specific market/macroeconomic factors and the ETF investment allocations. This rigorous out-of-sample research confirms that Chapoquoit Dynamic Portfolios outperformed popular equity benchmarks while delivering bond like risk levels over a 6-8 year market cycle.

What is the investment process for Chapoquoit Dynamic Portfolios?
Chapoquoit Dynamic Portfolios holds the following tenets as the basis for our investment process:

  • Past returns cannot profitably predict future performance.
  • Using top down market and macroeconomic analysis to control monthly allocations to ETFs is a very effective investment approach.
  • Minimizing downside risk over a market cycle, of 6-8 years targeting the overall return, generates more favorable investment results compared to a buy-and-hold approach.

What are Chapoquoit Dynamic Portfolios investment objectives?
Chapoquoit Dynamic Portfolios seeks to attain each of the following investment objectives.

  • A very attractive long-term investment return, after fees.
  • Outperform the stock market in equity bear markets. 
  • Performance that is strongly uncorrelated with stock market indices and other alternative investments.
  • Minimize the effect of months with negative returns.
  • Portfolio returns above the long-term average for equities, but with bond-like risk.

How do Chapoquoit Dynamic Portfolios differ from other alternative investment offerings?
Chapoquoit’s Dynamic Asset Allocation process is different from any other alternative investment offering because it offers all of the following:.

  • A diversified set of ETF investments
  • Patented, top-down fundamental process
  • Completely quantitative and computerized
  • A predefined rules-based methodology
  • A global macro approach
  • Employs macroeconomic data as inputs
  • Based on a linear programming formulation
  • Annual portfolio turnover generally below 40%
  • No technical trading
  • No trend following
  • No discretionary overrides
  • No illiquid investments
  • No performance fee

To learn more about how Chapoquoit Dynamic Portfolios work, click here