Investment Philosophy > Strategies

The Rockledge strategies seek to provide attractive returns in all market conditions by capitalizing on the dispersion of S&P 500 economic sector performance for the US strategies and Euro STOXX 600 Supersectors for the European strategies. Our strengths are the use of proprietary technologies and disciplined quantitative techniques to produce alpha by correctly forecasting short to medium term excess sector returns.

The Rockledge advantage is a superior risk/return outcome through the active management of the passive components of markets, thereby mitigating individual company risk by focusing exclusively on Sector Allocation. Our Strategies have a demonstrated ability to provide consistent Alpha in a context of minimal correlation with the S&P 500, lower volatility, immediate liquidity, total transparency, and high Sharpe ratio.

We have two types of strategies, a Long Only strategy that aims to consistently outperform a broad equity benchmark such as S&P 500, and a Long/Short strategy that aims to provide consistent cash like returns over period of time irrespective of market conditions.

The Long Only strategies (L2, EuroL2, HighPerf, LowVol, LowBeta)

L2 Market Outperform Long Only Strategy

  • Long only strategy using Rockledge excess sector return forecasts to go Long top S&P 500 sectors
  • Strategy is designed to outperform the S&P 500 Index

EuroL2 European Market Outperform Long Only Strategy

High Performers

  • Invest in four SPDR ETFs that have the highest performance over the last twelve months
  • Strategy is designed to outperform the S&P 500 Index

Low Volatility

  • Invest in four SPDR ETFs that have the lowest volatility over the last twelve months
  • Strategy is designed to outperform the S&P 500 Index

Low Beta

  • Invest in four SPDR ETFs that have the lowest beta over the last twelve months
  • Strategy is designed to outperform the S&P 500 Index

 

The Long/Short strategies (SectorAlpha, EuroSA, SectorSAM, Ultra, ProSA):

SectorAlpha Absolute Return Strategy

  • Long/Short strategy using Rockledge excess sector return forecasts to go Long best performing S&P 500 sectors and go Short the market as represented by the S&P 500, on a dollar neutral basis
  • Strategy is designed to have positive and stable returns in both up and down markets, low volatility and low correlation to S&P 500

EuroSA European Absolute Return Strategy

  • Long/Short strategy using Rockledge excess sector return forecasts to go Long top Euro STOXX 600 Supersectors and go Short the market as represented by the STOXX 600, on a Euro neutral basis
  • Strategy is designed to have positive and stable returns in both up and down markets, low volatility and low correlation to STOXX 600

 Absolute SectorAlpha (“SectorSAM”) Absolute Return Strategy

  • Long/Short strategy using Rockledge excess sector return forecasts to go Long best performing S&P 500 sectors and go Short the rest of S&P 500 sectors, on a dollar neutral basis
  • Strategy is designed to have positive and stable returns in both up and down markets, low volatility and low correlation to S&P 500

Ultra Absolute Return Strategy

  • Long/Short strategy using Rockledge excess sector return forecasts to go Long best performing S&P 500 sectors and go Short the worst performing S&P 500 sectors, on a dollar neutral basis
  • Strategy is designed to have positive and stable returns in both up and down markets, low volatility and low correlation to S&P 500

ProSA Absolute Return Strategy

  • Long/Short strategy using Rockledge excess sector return forecasts to go Long best performing S&P 500 sectors and go Short the market as represented by the S&P 500, using the inverse S&P 500 ETF, on a dollar neutral basis
  • Strategy is aimed to provide access to a Long/Short strategy in an IRA or similar account where margin account is not possible and shorting is not allowed
  • Strategy is designed to have positive and stable returns in both up and down markets, low volatility and low correlation to S&P 500