Small Cap

The Small Cap FormulaFolio is a dynamic equity model that primarily looks at the following criteria:

Price to Book Ratio
Price to Cash Flows
Return on Assets

It uses a unique ranking method that dynamically changes the influence of each factor so the model is able to adapt as markets change. It is a US stock only model and, when fully invested, can hold up to 40 individual securities.

The model also uses a proprietary macro economic overlay model known as Recession Probability Analytics (RPA). The RPA is designed to determine if it is prudent for the portfolio to be fully invested given current economic conditions in the US. When it is not considered prudent, the model is automatically adjusted to incorporate up to 50% of excess cash to the allocation. The RPA is also a dynamic model that adjusts automatically as knew data becomes available.

Allocation Strategies

Aggressive
Long term growth investment objective. 70% traditional equities, 30% total return growth.
Moderate Aggressive
Long term growth investment objective. 56% traditional equities, 24% total return growth, 20% income.
Moderate
The Moderate is the flagship allocation strategy, utilizing some components of all sub-models. It is invested 36% traditional equities, 24% total return growth, and 40% Income 50.
Moderate Conservative
The second most popular allocation strategy. It is invested 24% traditional equities, 16% total return growth, and 60% Income 50.
Conservative
This allocation is invested 10% traditional equities, 10% total return growth, and 80% Income 50.
Income 50
Income 50 uses two underlying models to invest in income ETFs with a total return objective. It is slightly more aggressive than the Income 70.
Income 30
Income 50 uses two underlying models to invest in income ETFs with a total return objective. It is slightly more conservative than the Income 50.

Individual Strategies

Large Cap
A quantitatively managed, low turnover portfolio of individual equities. Holds up to 20 individual securities and can be heavily invested in cash at times. Fundamental and global macro factors determine composition and position size.
Mid Cap
A quantitatively managed, low turnover portfolio of individual equities. Holds up to 40 individual securities and can be heavily invested in cash at times. Fundamental and global macro factors determine composition and position size.
Small Cap
A quantitatively managed, low turnover portfolio of individual equities. Holds up to 40 individual securities and can be heavily invested in cash at times. Fundamental and global macro factors determine composition and position size.
International
A quantitatively managed, low turnover portfolio of individual equities. Holds up to 40 individual securities and can be heavily invested in cash at times. Fundamental and global macro factors determine composition and position size.
Market Rotation
A tactical allocation portfolio of exchange traded funds (ETFs).
FF 2.0
FF2.0 is an aggressive, market neutral portfolio of ETF's. It is designed to capitalize on both up and down moves in broad US stock markets.