Strategies

FLAGSHIP

Active: US Large Cap Sector Rotation

Main Management was founded on the philosophy that sectors are a more efficient way to own equities than single stocks. Accordingly the strategy uses a disciplined investment process to rank and select market sectors that are trading below their historical averages on an absolute and relative basis. The firm also believes that undervalued sectors typically revert to their mean when the appropriate catalyst is present. A sector will be sold when its price target is achieved The strategy derives excess returns from the correct overweight and underweight of sectors relative to the S&P 500 benchmark. The portfolio is implemented using Exchange Traded Funds (ETFs). Inception: September 2002.

 

BuyWrite: Hedged Equity 
The objective of the strategy is to provide investors with high single digit / low double digit returns during a positive or neutral equity market while providing investors with significant protection during down markets. Main Management seeks to achieve this investment objective by investing in a portfolio of exchange traded funds (ETFs) selected through fundamental reversion to the mean analysis while utilizing a covered call writing strategy to dampen volatility. The funds fundamental asset allocation may include equity investments, debt investments, and diversifying investments. The strategy is offered in both Separately Managed Accounts (SMA) and Limited Partnership Interest. Inception: September 2004.

 

All Asset: Global Balanced
The portfolio seeks to replicate the risks and returns of sophisticated endowments and foundations using liquid investment vehicles. The portfolio managers select from a wide array of diversified asset classes to create a comprehensive, globally diversified solution. The strategy aims to provide investors with tax-efficient, equity-like returns with substantially lower risk than the S&P 500 index. It maintains exposure to US Equities, International Equities, Fixed Income, and Diversifying/Non Correlated Investments and balances a core strategic asset allocation with carefully selected tactical trading strategies. Risk management includes controlling volatility with targeted selling of covered call options. Benchmark is 70% MSCI All Country World Index – 30% Barclays Aggregate Bond Index. Inception: November 2006.

 

International: Non-US Equity
Main Management seeks to achieve long term capital appreciation by investing in non U.S. country and sector indexes. The portfolio utilizes a dynamic asset allocation approach which combines the benefits of both strategic and tactical allocation strategies. It employs a top down assessment to identify undervalued economic regions, countries and sectors. Rigorous fundamental analysis and a proprietary weighting methodology are key components of a disciplined allocation process. Concurrently, tactical allocations will be used to anticipate and respond to opportunistic shifts in the market. Benchmark is the MSCI All Country World ex US index. Inception: December 2007.

Main Management claims compliance with the Global Investment Performance Standards (GIPS®)

Main Management is an investment adviser registered under the Investment Advisers Act of 1940.
To obtain a compliant presentation, and/or the firm’s list of composite descriptions, please contact Main Management at info@mainmgt.com


 

RISK BASED
Main recognizes the majority of portfolio performance is the result of allocation to the appropriate asset classes at the right point in the investment cycle. The portfolios are constructed using passive indexes through Exchange Traded Funds (ETFs) to create comprehensive, diversified portfolios of equities and fixed income focusing on consistency of returns. Each approach is a derivation of the firm’s All Asset strategy, a global balanced approach, with variations based on risk and/or age parameters.


Growth

The Growth Portfolio has a baseline allocation of all global equities of which a portion may be allocated to a cash position. It is designed to achieve long-term equity-like returns while avoiding the full impact of major market corrections.

Intermediate Growth
The Intermediate Growth Portfolio has a 75% global equity and 25% fixed income allocation baseline where a portion of the equity may be allocated to a cash position. It is designed to achieve long-term equity-like returns while avoiding the full impact of major market corrections while experiencing less volatility than an all equity portfolio.

Moderate Growth
The Moderate Growth Portfolio has a 50% global equity and 50% fixed income allocation where a portion of the equity may be allocated to a cash position. It is designed to participate in a rising equity environment while avoiding the full impact of major market corrections while experiencing substantially less volatility than an all equity portfolio.

Conservative Growth
The Conservative Growth Portfolio has a 25% global equity and 75% fixed income allocation where a portion of the equity may be allocated to a cash position. It is designed to participate in a rising equity environment while avoiding the full impact of major market corrections and experiencing a portion of the volatility of an all equity portfolio.