Managers & Models

Toews Managed Blueprint Portfolios: Navigating Markets with Risk-Managed Growth

Are your clients seeking growth while managing risk? Toews Managed Blueprint Portfolios offer a compelling option of actively managed strategies targeting equity growth with a focus on mitigating downside risk through dynamic hedging and defensive positioning. 

Strategic Investment Process

• Market Outlook: Toews starts by analyzing economic and market trends to identify potential risks and opportunities.
• Equity Selection: Toews selects what it believes are high-quality companies with strong fundamentals and attractive valuations.
• Option Hedging: A portion of the portfolio is hedged using equity options, aiming to protect against market downturns.
• Defensive Positioning: A portion is allocated to investment-grade bonds for income generation and diversification.
• Continuous Monitoring: The portfolio is constantly monitored and adjusted based on changing market conditions and Toews’ evolving outlook.

Building a Diversified Portfolio

• Targeted Equity Exposure: Typically 60-80% is in US equities across various sectors and styles.
• Dynamic Hedging: The level of hedging varies based on market sentiment, potentially ranging from 0% to 25%.
• Defensive Allocation: Up to 20% may be allocated to investment-grade bonds for income and stability.

When is This Strategy Best Positioned to Shine?

• Volatile Markets: The hedging strategy aims to cushion downside during market corrections, potentially outperforming purely long-only equity portfolios.
• Rising Interest Rates: The bond allocation can provide stability and income as interest rates rise.
• Uncertain Economic Environments: The dynamic approach seeks to adapt to various market conditions, aiming for consistent returns regardless of the economic climate.

Investors to Consider

• Those seeking growth potential: The equity exposure offers the chance to capture market upswings.
• Risk-conscious investors: The hedging and defensive allocation aim to mitigate downside risk.
• Long-term investors: The focus on fundamentals and risk management aligns with a long-term perspective.