Enhanced Dynamic®

An Introduction to the Enhanced Dynamic® Methodology 


There are times in the domestic equity markets, where Growth styled investments will be more productive (and profitable) than Value styled investing. There are other times, when a Value style investing approach  is more successful (and profitable) than  Growth styled  investments. The same general principles apply with stock market capitalizations, where at times Large Cap stock investing is more profitable and productive then Small Cap stock investments, while at other periods Small Cap stock investments are more profitable then Large Cap stock investing.

The genesis of the Enhanced Dynamic® concept evolved from our collective investment consulting business experience. We found that all too often, after hiring a very successful investment manager, with a solid 3 to 5 year track record that that same manager would often (1-3 years later) be terminated due to their underperformance relative to the same standard index benchmarks they had so consistently exceeded. We found the general cause of this underperformance was NOT the manager changing his style, or techniques of equity management, but was often that the equity market had changed around them.  Simply put, their style or cap size or both, were no longer in in favor, which lead to their underperformance.

The Enhanced Dynamic® methodology identifies these shifts within the marketplace by using quantitative analysis, analytical studies along with micro and macro-economic tools, which then indicate the adjustments and tilts necessary to maintain the most productive and profitable positioning within the style and cap size classes of domestic equity portfolios.

These changes are strategic, and by design of the algorithmic models, the most frequently a repositioning of a portfolio will occur is once in any 12-month period of time. Enhanced Dynamic® is not a market timing, trading or tactical asset allocation model.

It is expected that all portfolios remain fully invested for the entire equity market cycles. The Enhanced Dynamic® methodology is a dynamic, prudent, fiduciarily sound domestic equity allocation methodology, which is intended to reduce portfolio volatility while increasing portfolio returns.

The Enhanced Dynamic® methodology is the culmination of decades of experience in the direction of portfolio assets for individuals, retirement plans and institutions. The Enhanced Dynamic® methodology  stands on the current and proven bestpractices within the financial services industry.  Further independent research organizations, academic studies, investment professionals and practitioners have examined our process and results and verified them to be accurate and repeatable.

Finally, the Enhanced Dynamic® strategies have proven themselves to be effective is in both good (rising) and bad (declining) equity markets, generating higher returns in up markets (upside capture) and declining less than equity market averages in down markets (downside capture).