“The most important rule is to play great defense, not great offense.”
– Paul Tudor Jones II, billionaire hedge fund manager
Traditional investing tells you to ride-out the bad times so you don’t miss-out on the good. That’s fine if you are thirty-years old with plenty of time to weather the storm. But for most high-net worth investors, waiting fifteen years to recover your losses is at best nerve racking and, at worst, devastating. That is why Equitas Capital created the Equitas Navigator strategy with an eye toward risk-management. We look to minimize drawdown in our actively managed account without limiting upside gains. The result is a model that may deliver consistent alpha over benchmark.
Hypothetical growth of $1M in Global Navigator from June 2013 to Oct 2022 compared to a 60% MSCI World/40% BC Global Agg mix. Also showing annual full-year hypothetical cumulative returns performance comparison.
Navigator strategies seek to capture capital flows in stock and bond markets while attempting to avoid major drawdowns.
That’s our goal – to smooth the ride with a dynamic approach to owning global stocks and bonds. Our proprietary system updates the allocation of up to twelve ETFs within the account every month. We combine technical and fundamental analysis in a systematic approach that takes the emotion out of investing. We keep one eye on the current market and the other eye on the horizon.
Our innovative blended model aims to capture significant upside, thanks to fundamental research and analysis by Ned Davis Research. The charts provided by Ned Davis detect business cycles and help us identify investment themes based on global economics.
Fundamentals tell us what to buy.
Technicals tell us when.
What makes Equitas Navigator unique is the combination of technical research within the fundamental analysis. Dorsey Wright has a 30+ year history of technical and momentum analysis using Point & Figure and Relative Strength analysis of over 50,000 securities. They were acquired by Nasdaq in 2015. By blending the recommendations of these two research powerhouses, Equitas has created a modern method of mitigating risk while maximizing upside potential.
Disclaimer: Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment or strategy will be profitable or equal to past performance levels. Risk and return are measured by standard deviation and arithmetic mean, respectively. These graphics are for illustrative purposes only and not indicative of any specific investment. An investment cannot be made directly in an index. All performance is net of fees and trading costs. Individual client results may differ due to customization, tax loss selling, or variables inflows/outflows. Data covers period 1/1/2014 through 10/31/2022.
Certain information contained herein is based upon hypothetical performance. Hypothetical performance results may have inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits similar to those shown. In fact, there are frequently significant differences between hypothetical performance results subsequently achieved by following a particular strategy. One of the limitations of hypothetical performance results is that they are prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk associated with actual trading, including changing objectives and constraints on the management of the account. There are numerous other factors related to the markets in general or to the implementation of any specific trading strategy that cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.
Returns are pro forma returns net of a 0.50% annual management fee for Bond Navigator and 1.00% for Stock Navigator and Global Navigator. Fees are billed quarterly. Historical trades were generated from Ned Davis Research output after proprietary enhancements were engineered by Equitas Capital Advisors using Dorsey Wright’s scoring system. Invested capital began in this program on October 1, 2022.
Additional data sources used in the creation of the strategy include, but are not limited to: Ned Davis Research, JPMorgan, MPI Analytics, Bloomberg, FactSet, Morningstar, Standard & Poor’s, Bank of America Merrill Lynch, MSCI, Nasdaq Dorsey Wright, Federal Reserve, OECD, Bureau of Labor Statistics.
Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment or strategy will be profitable or equal to past performance levels.
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