01 Objective
Long-term capital appreciation by dynamically allocating across the eleven GICS sectors of the S&P 500 — overweighting where valuation and catalyst align, underweighting where they do not.
Flagship
Active Sector Rotation
Dynamic active management across S&P 500 sectors, guided by valuation and catalyst — refined through every market cycle since inception.
Dynamic, not tactical.
The strategy starts with a valuation screen — which sectors look attractive relative to history and to each other — then overlays fundamental analysis on earnings trends, margins, and credit conditions, and waits for catalysts that can unlock the value. It is not pure value investing. It is not momentum chasing.
It is a question we ask every day: where do fundamentals support growth, and what's going to make the market recognize it?
The portfolio stays fully invested in equities at all times. Dynamic means we rotate between sectors based on conviction; it does not mean moving in and out of the market. That distinction matters: tactical is timing, dynamic is positioning.
The framework has been refined through more than twenty years and four full market cycles. Each cycle informs the process in ways the prior one did not, and the discipline compounds.
Spec sheet
At a glance.
02 Approach
Fundamental, with a catalyst. A quantitative valuation screen (P/E, P/B, P/S) paired with a qualitative review of forward catalysts. We remain fully invested in equities and rotate between sectors — we do not move to cash.
03 Implementation
Each sector view is expressed through the most exposure-pure, cost-efficient sector ETF available. Four to eight sector positions hold hundreds of underlying stocks, typically 90–100% U.S. equity.
How it works.
Three steps from broad market exposure to active sector weights — same equity sleeve, different sector mix.
01 Baseline
Start with the market
S&P 500 sector weights — the benchmark every position is sized against.
Information Technology33%
Financials12%
Communication Services11%
Consumer Discretionary11%
Health Care10%
Industrials9%
Consumer Staples5%
Energy3%
Utilities2%
Materials2%
Real Estate2%
Total100%
Sector weights illustrative.
02 Diagnostic
Apply Main's Lens
Three tests every sector has to pass before it earns an active weight.
- i.
Valuation discipline
Identify sectors trading at meaningful discounts or premiums — versus their own history, and versus the market.
- ii.
Fundamental support
Review earnings revisions, margins, industry trends, quality, and growth to confirm the setup.
- iii.
Catalyst path
Confirm an observable catalyst — policy, rates, commodities, regulation, or cycle shift — that can re-rate the sector.
03 Allocation
Active sector weights
Tilts relative to the S&P 500 benchmark.
Overweight
Technology Financials Industrials Energy
Enhanced exposure where conviction is high.
Market weight
Health Care Consumer Staples Utilities Real Estate
Near benchmark where the outlook is balanced.
Underweight
Communication Services Consumer Discretionary Materials
Reduced exposure where risk/reward is poor.
Over- / underweights illustrative.
Same equity sleeve. Different sector mix.
The process is dynamic and fully invested — rotate within equities as the opportunity set changes.
Where sector conviction comes from.
Four inputs feed the conviction picture for each sector. None of them stands alone — alignment across at least three is the bar for a meaningful overweight.
01
Long history
Compare each sector against its own cycle history and relative valuation versus the market — over decades, not quarters.
Relative performance vs. market
(sector index / market index)
2002200820152020Today
Cycle contractions Sector relative performance
02
Valuation extremes
Focus on meaningful discounts and premiums; neutral readings carry less signal.
Historical valuation percentile
03
Fundamental momentum
Review revisions, margins, breadth, quality, and growth to confirm the setup.
Earnings
Revisions
Revisions
Margin
Trend
Trend
Breadth
Quality
Trend
Trend
Growth
Trend
Trend
Positive Neutral Negative
04
Catalyst path
Identify policy, rate, commodity, regulatory, or cycle shifts that can unlock value.
Policy and fiscal direction
Rate and liquidity backdrop
Commodity, regulation, or cycle inflection
Sector Allocation
Underweight
Real Estate
Utilities
Consumer Staples
Market weight
Industrials
Financials
Materials
Energy
Overweight
Information Technology
Communication Services
Consumer Discretionary
Health Care
Current sector positioning
How the portfolio is tilted across the eleven GICS sectors versus the S&P 500, as of last month-end. Refreshed monthly.
Where it fits in a portfolio.
Two pies tell the story — a typical client allocation on the left, zoomed-in on the growth bucket on the right, with Active Sector Rotation as the U.S. equity engine.
Sample portfolio allocation
Illustrative portfolio — not a recommendation.
Talk with us about Active Sector Rotation.
Walk through the current positioning, the philosophy, or how it would fit alongside your existing core. The conversation is the partnership.