We offer the following factor-based, quantitative stock investment strategies to individuals, institutions, family offices and other investment advisory firms through separately managed accounts and model portfolios.

Risk-Managed Large Cap Defensive Equity Strategy

This strategy seeks to provide long-term capital appreciation over the full market cycle while also providing downside protection against major market declines. More specifically, this strategy’s integrated approach seeks to produce returns that are comparable to the S&P 500 Index over a full market cycle with lower volatility by investing in stocks that have substantial quality and low volatility factor advantages. It also seeks to limit downside risk (i.e., maximum drawdowns or peak-to-bottom declines) through the application of a proprietary, multi-factor market-timing hedge as a portfolio overlay. In summary, this strategy is a defensive large cap, U.S. stock investment strategy that provides the benefits of risk-controlled equity exposure. Fact Sheet>

Risk-Managed Multi-Factor Equity Strategy

This strategy seeks to provide long-term capital appreciation over the full market cycle while also providing downside protection against major market declines. More specifically, this strategy’s integrated approach seeks to produce returns that are greater than the Russell 3000 U.S. Stock Market Index over a full market cycle by investing in stocks that have substantial quality, value, low volatility and price momentum factor advantages. It also seeks to limit downside risk (i.e., maximum drawdowns or peak-to-bottom declines) through the application of a proprietary, multi-factor market-timing hedge as a portfolio overlay. In summary, this strategy is an all-cap, U.S. stock investment strategy that provides the benefits of risk-controlled equity exposure. Fact Sheet>

Risk-Managed Multi-Factor Small Cap Strategy

This strategy seeks to provide long-term capital appreciation over the full market cycle while also providing downside protection against major market declines. More specifically, this strategy’s integrated approach seeks to produce returns that are greater than the Russell 2000 Small Cap Index over a full market cycle by investing in small capitalization stocks that have substantial quality and low volatility factor advantages. It also seeks to limit downside risk (i.e., maximum drawdowns or peak-to-bottom declines) through the application of a proprietary, multi-factor market-timing hedge as a portfolio overlay. In summary, this strategy is a small cap, U.S. stock investment strategy that provides the benefits of risk-controlled equity exposure. Fact Sheet>

Risk-Managed Multi-Factor Real Estate Strategy

This strategy seeks to provide favorable long-term total returns, through both capital appreciation and current income, by investing in equity securities of companies principally engaged in or related to the real estate industry, while also providing downside protection against major market declines. More specifically, this strategy’s integrated approach seeks to produce total returns that are greater than the MSCI U.S. Investable Market Real Estate 25/50 Index over a full market cycle by investing in real estate securities that have substantial quality and value factor advantages. It also seeks to limit downside risk (i.e., maximum drawdowns or peak-to-bottom declines) through the application of a proprietary, market-timing hedge as a portfolio overlay. In summary, this strategy is a U.S. real estate focused stock investment strategy that provides the benefits of risk-controlled equity exposure. Fact Sheet>

Multi-Factor Small Cap Strategy

This strategy seeks to provide long-term capital appreciation over the full market cycle. More specifically, this strategy’s integrated approach seeks to produce returns that are greater than the Russell 2000 Small Cap Index over a full market cycle by investing in small capitalization stocks that have substantial quality and low volatility factor advantages. Unlike our other quantitative stock investment strategies, this strategy does not include a market timing hedge. Fact Sheet>

Risk-Managed Core Equity Strategy

This strategy is a composite or multi-strategy investment strategy that seeks to provide long-term capital appreciation over the full market cycle while also providing downside protection against major market declines. More specifically, this strategy’s integrated approach seeks to produce returns that are greater than the Russell 3000 Broad U.S. Stock Market Index over a full market cycle by investing in stocks that have substantial quality, value, growth, momentum and low volatility factor advantages. It also seeks to limit downside risk (i.e., maximum drawdowns or peak-to-bottom declines) though the application of a proprietary, multi-factor market-timing hedge as a partial portfolio overlay. In summary, this strategy is a composite all-cap, U.S. stock investment strategy that provides the benefits of risk-controlled equity exposure. Fact Sheet>

Risk-Managed Multi-Asset Strategy

This strategy is a multi-asset investment strategy that seeks to provide moderate long-term capital appreciation over the full market cycle while also providing enhanced downside protection against major market declines. More specifically, this strategy’s integrated approach seeks to produce returns that are greater than those of a traditional 60% stock / 40% bond portfolio over a full market cycle, with lower downside risk, by combining an investment in stocks that have substantial quality, value, growth, momentum and low volatility factor advantages with an allocation to intermediate term U.S. government bonds and gold and the application of a proprietary, multi-factor market-timing hedge as a partial portfolio overlay. In summary, this strategy is a core, multi-asset investment strategy that combines the benefits of risk-controlled equity exposure with the additional security of U.S. government bonds and gold. Fact Sheet>

Contact Us to Learn More

To learn more about our strategies, please contact Mark Ricardo, President and Chief Investment Officer, at 703-740-1765 or mark@mercapitalmanagement.com.

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