Manager Spotlight
Heritage Capital
Active Management, Defensive Strategies
Heritage Capital’s mission is to provide investors with strong returns throughout the full market cycle. It uses an exclusive Active Management Approach that strives for superior returns while helping investors minimize exposure during market declines. Its approach is to diversify not only its holdings, but also its strategies. This achieves balance because when some of the strategies are losing, others are more likely to be winning.
Three Heritage portfolio strategies are offered on the EQIS platform:
- Heritage Relative Strength Sector: Focuses primarily on capital appreciation unless the stock market models call for blending in capital preservation. The strategy employs a proprietary computer model to select one to four top-performing U.S. market sectors, including cash, that indicators predict will offer the highest potential reward over the intermediate term. This actively managed strategy is then implemented using exchange-traded sector funds, the Rydex sector funds, and other sector funds. Positions are modified and rebalanced as often as weekly to meet its goal of investing assets in the top-performing sectors. Although this is a trend-following strategy, the risk management component uses mean reversion looking at the overall market, and begins to impact investment decisions when any two of its three market models go negative.
- Heritage Capital Diversified Growth: Focuses primarily on capital appreciation along with capital preservation on an opportunistic basis. It is a top down, risk-managed index strategy with the ability to take long, short and neutral positions in the Dow Jones Industrials, S&P 500, S&P 400, Russell 2000 and NASDAQ 100 as expressed by exchange-traded funds or index mutual funds that track the various indices. Two distinct and independent models are used in this strategy; one that focuses on the long term, while the other looks at the intermediate term. Both models have trend-following as well as mean reversion rules to account for different market environments.
- Heritage Short-Term Gold Equities Program: A concentrated, risk-managed sector program designed to participate in short- and intermediate-term rallies in the PHLX Gold/Silver Index. When short- and intermediate-term price declines occur, its objective is to position investor assets in the safety of money market funds. Capital preservation and appreciation have similar weights in this actively managed strategy, but volatility and drawdowns are significantly below historical levels through the use of tight and stringent stop losses on all positions. This program is non-correlated to the U.S. stock market. Through its focus on short- and intermediate-term moves, it has the potential to produce gains regardless of the longer-term market direction for precious metals mining companies.
If you would like to deploy these strategies, go to the respective client contact and from the Action drop-down menu in the upper right corner, select Change Asset Allocation.
This option is only available for clients who have provided you with trading authorization. If you do not have trading authorization, you can either submit a Limited Power of Attorney signed by the client or use the Client Directed Asset Allocation Form found on the Resources Tab and have the client sign it.
Your EQIS Business Consultant is available to help you implement these changes, or contact Advisor Services at support@EQIS.com or 800-949-9936 and press 2.
The representations and opinions herein are the opinions and views of Heritage Capital and are not the opinions or views of EQIS. The information is believed to be reliable but is neither guaranteed by EQIS nor any of its affiliates. EQIS and Heritage Capital are not affiliated.
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