Sales@fourwardcapital.com
Our Approach
The Quadrant Strategy is based on the framework that the economic landscape shifts over time and that major economic drivers, such as monetary and fiscal policy, consumer behavior, technological changes, and changing demographics, can independently influence different markets over time. As a result, some assets outperform while others underperform depending on the combination of factors mentioned above. Through historical research, we observed a fixed number of major economic scenarios and built a portfolio of assets split between each. We believe this to be an improvement upon a traditional portfolio (e.g. a 60/40 portfolio) which typically only benefits from rising growth and declining interest rates.
The Quadrant Strategy aims to limit periods of exaggerated volatility on an annual basis. Intervening short-term time periods may be more volatile than the markets overall, and it is important that prospective clients understand the long-term nature of the strategy. In implementing the Quadrant Strategy, we generally design a portfolio for a five-year time period and rebalance approximately every 18 months. Because the focus is on limiting the impact of volatility while still capturing growth, we do assume that over time the Quadrant Strategy will dampen both market highs (limiting upside return) and market lows (attempting to limit downside losses). The goal of implementing this strategy is to generate stock market-like returns with less annual volatility.