Managers & Models

Focus Point Macro

Focus Point Macro is an attractive option for investors looking for a liquid alternative investment strategy with the potential to outperform hedge funds.

Focus Point Capital was founded in 2010 offering a macro approach to investing that acts as both an alternative to hedge funds and a total portfolio solution. Its strategy is designed to be adaptive, long-biased and risk-managed, with the goal to outperform hedge funds without the downsides of high fees, illiquidity and lack of transparency by using a proprietary risk model to dynamically allocate capital between risk assets and non-risk assets.

The Focus Point Macro model is constructed based on risk regimes as defined by the Focus Point Leading Market Indicator. During what Focus Point believes to be a positive risk regime, the portfolio may be up to 80% invested in risk assets, such as equities and commodities. During a neutral risk regime, the portfolio may be 50% to 70% invested in risk assets. During a negative risk regime, the portfolio may be less than 20% invested in risk assets. The remainder of assets are generally composed of cash and Treasuries.

Focus Point takes an active approach to managing themes, such as sector, geographic or market cap views. The portfolio utilizes three asset classes: equities, commodities and rates. Risk exposures are expressed utilizing ETFs. Overall, when considering risk-asset exposures, investors can expect a minimum of 80% of the portfolio's risk to be allocated to US equities, with a maximum of 10% in commodities.

There are three levels of risk management:

• The Focus Point LMI dictates the overall level of risk based upon a monthly assessment of a broad array of economic and market data.
• There are position-level triggers which create decision points based upon technical levels.
• There are portfolio-level triggers which create decision points based upon total portfolio losses.