Strategies are the basic ingredients used to create Blended Portfolios. Like a recipe, the relative allocations to the underlying strategies create portfolios with different risk and return characteristics. The development of the Stone Barn Strategies was nearly a 3 year process which produced opportunities that are unique for finding a solution that meets the individual need of the investor.
While each of the strategies can serve as a stand-alone investment approach, it is not always wise to do so. For example, NDX – Momentum is a very volatile strategy offering attractive performance over time, but intolerable risk for most investors. When blended with other strategies and hedged at the right times in a portfolio, it can be a worth addition to an account. NDX – Low Volatility is used by some investors as a stand-alone strategy because the use of a single strategy makes implementation easy. But again, when blended with other strategies the tendency of the strategy to under-perform in strong markets is overcome to produce portfolios that an investor can live with when markets are leaving most “balanced portfolios” in the dust.
We include the strategy holdings in our monthly updates to subscribers so they can create their own portfolio blends, if they want. But the feedback we get is that most investors find a blend that fits their needs in the several portfolios we also provide.
You can find more information on each of the underlying strategies by clicking on one of the boxes below.
NDX – Momentum
This strategy provides horsepower for coveted alpha. It is a long only strategy that is hedged during periods of significant market weakness.