The securities lists combine with appropriate settings and forecasts and other management processes to form portfolios than can be readily mapped to traditional client facing selections. These descriptions are merely suggestive and will be formalized upon agreement. Please select the three models that best help service your client base and prominent opportunity set.

  • Defensive
  • Moderate
  • Strategic Growth
  • Tactical Growth
  • Aggressive
  • Income
  • Growth & Income

With the right assets identified and scored, we then combine that selection process with our best quantitative investment practices. Collectively these form what we call the investment policies for any model. This may encompass process dimensions such as Capital Market assumption generation, rebalancing, stop-loss price setting and profit taking. We believe that part of successful investing involves deciding what to invest in and what not to invest. Accordingly, even amongst stocks that we like we will use the diversification optimization logic of Gsphere to remove inefficiencies amongst our investment candidates typically this means taking one third of otherwise acceptable investments out of the portfolio model. The assets that are removed are typically amongst the poorer diversifiers of the set. The remaining assets then provide a superior combination of our expected performance and diversification. GCP currently maintains nine core lists and four satellite lists to select from. These lists can be combined in varying proportions to create the optimal design of your proprietary model portfolios. You can mix and match multiple core and satellite investment options and provide guidance on the portfolios that our financial engineering team assimilates into the optimal settings inside any True Diversification portfolio. We can add models periodically should we identify gaps in the solution offering or particularly attractive market opportunities. For example, after combining some sets with overall objectives we can define the model:

Strategy NameGravity Diversification Weighted™ Core Satellite
Primary BenchmarkS&P Balanced Equity and Bond – Moderate Index
Strategy DescriptionThe core satellite portfolio has an objective of total returns across all market conditions; capital preservation is a secondary objective. Consistent, strong measured diversification is a tertiary objective. Variance of returns and tax efficiency are also considered. The core / satellite balance is actively managed based on market conditions. The portfolio may vary its allocation to cash, but generally stays fully invested. The model is optimized using the patented Diversification Optimization process. True Diversification® is measured, modeled and evaluated ensuring assets are in optimal balance and superior total diversification is achieved. This is an absolute return portfolio designed for total performance. The model is actively managed for risk and maintains high levels of diversification, shielding the portfolio from market impact. The model contains elements of shorter term tactical plays nested in a framework of consistent, longer term alpha and beta strategies. The beta components represent the core of the portfolio and include an actively managed balanced of equity and fixed income products. This core is complemented with satellite investments, containing both outside alpha producing fund managers and our best tactical ideas. The alpha managers are evaluated on their basis to produce consistent returns and diversification. The remaining components of the portfolio are actively invested in our favorite ideas, typically stocks and exchange traded funds. Such positions are actively managed and returns are harvested when targets are achieved. The portfolio is also subject to ongoing thesis adjustment and monitoring and will discard investments no longer in accord with current expectations. This is a more concentrated version of the Gravity Diversification Weighted® Core Satellite model designed to offer True Diversification® to smaller accounts.