WSC Sector Rotation Strategy

Maximal Downside Protection, Incredible Results & A Low Portfolio Turnover Ratio!

Portfolio Insights

The WallStreetCourier Sector Rotation Investment Strategy is a long only investment strategy which seeks to generate excess risk-adjusted returns relative to the S&P 500 through a systematic investment process. The target is to limit the downside during a bear market and profit at least as much as the market does during a bull market. Therefore the main goal is to achieve steady returns and not to outperform the market at any time since the focus is based on the portfolio accumulation effect (reinvested gains with steady returns and low draw downs will lead to a higher portfolio value over time).

Portfolio Accumulation Effect: Portfolio A has a base value of 100 and gained 50% in the first year and lost 30% in the second year: So the value of Portfolio is 105 - Portfolio B which has also a base value of 100 only gained 30% in the first year and lost 10% in the second year: so the value of Portfolio B is 117.

The strategy delivers weekly buy and sell decisions based on nine different Select Sector exchange traded funds (ETFs), which represent the primary sectors of the S&P 500 Index, plus an ETF that represents short-term Treasuries. All underlyings (Select SPDR Sector ETFS and/or Treasuries) which are included in our portfolio are permanently equal weighted.

For this portfolio we use the nine different S&P Select SPDR ETFs which are all quoted in USD and are available in North America. The algo is also designed to reduce your brokerage commissions.

Performance Data

Hundred thousand dollars invested in the WSC Sector Rotation Strategy is worth $255,237. This implies an annualized return of 7.7%. A comparable investment in the S&P 500 benchmark is worth $101,157 implying an annualized return of 0.1%. The highes loss or maximum drawdown (from peak to valley) was only 30.7 % for the WSC Sector Rotation Strategy compared to 55.5% for the S&P 500.