A Path to Peak Performance

At PEAK, we believe in using passive investments as the building blocks for our clients at the position level; however, we strongly believe in employing an overlay of active management at the portfolio level, which is known as being tactical.

Being a smaller firm, we’re able to be more flexible and nimble with portfolio changes and trading as compared to larger corporations. We don’t deal with potential conflicts such as capacity constraints and contractual arrangements for minimum holding and divestment periods. Therefore, we’re able to develop a thoughtful, dynamic and well-rounded approach that takes advantage of any and all opportunities to add the most value to your portfolio—and your financial future.

Understanding a Tactical Approach. With a tactical approach, the intent is to take advantage of market conditions within a range of acceptable percentages in each broad asset class. For instance, if the market outlook is bleak, a tactical approach provides the flexibility to act more defensively and reduce equity exposure. Conversely, if the outlook is positive, this approach provides the flexibility to move to the higher end. There is also the probability that various sectors and asset classes may lead or fall behind during certain stages of a typical economic cycle, and playing the odds can lead to better returns over time. These trends often present themselves over a mid-term time horizon.

In dynamic markets, making tactical shifts among asset classes and sectors based on what’s happening in the markets—or what we foresee happening—can help increase gains or mitigate losses.

How is a Strategic Approach Different? Rather than make adjustments to asset allocations in anticipation of or in response to changes in the market or economic backdrop, a strategic approach sets a target allocation and stays the course, rebalancing the portfolio back to the original allocation percentages only when they have been skewed by investment returns.

Our Approach. At PEAK, we believe in and exercise tactical management. Our portfolios employ an evidence-based approach that is executed as a peripheral overlay to a core, long-term allocation. We constantly analyze momentum trends and patterns, search for dislocated or undervalued asset classes and sectors, and are always mindful of the potential for extreme market conditions. While we fully believe in the continued, long-term upward trajectory of the financial markets, we by no means believe that an auto-piloted approach is best for your account or your general sense of financial security.