YOKE

Markets are a like a pendulum that swing from severely underpriced to insanely overpriced. Very rarely are the markets fairly valued. Regardless of strategy, factor, market cap, or style there are times when any single strategy underperforms the market. Rarely does a single strategy work over the long term, today, and tomorrow. We use a portion of our portfolio in invest in what we deem great quality growth companies. Over the long term, companies that are disciplined in capital investment, debt issuance and shareholder interests along with a competitive advantage should perform admirably. While this makes sense on paper, it doesn't work all the time. Companies fall in and out of favor from a stock investment standpoint regardless of their performance. For these times we want to own investments that are working today. Another portion of our portfolio is dedicated to a momentum/trend strategy of companies that have performed over the recent term. By looking at the companies that people are buying today we try to gauge whether the market is being driven by fear or greed. If our momentum indices are populated with lower quality names with little earnings and/or cash flow then we move to more defensive equity positions with the last sleeve of the portfolio. After a correction, the market momentum is usually being driven by the defensive side of the equity market and we then attempt to move to companies/industries/sectors that traditionally react the strongest coming off a market bottom. We stay in this recovery mode until the market gets back to fair value or pushes through to greed.