Objective
The Westwood Broadmark Dynamic Opportunity strategy seeks to produce above-average risk-adjusted returns, in any market environment, while exhibiting less downside than the broad equity market.

Investment Philosophy
We believe investment risk can be defined as loss of capital and that active portfolio allocation and dynamic exposure management can help mitigate that risk. We aim to sidestep market downturns and avoid capital loss through a top-down, directional approach that looks to reduce systematic portfolio risk and potentially enhance long-term risk-adjusted returns.

Investment Approach

• Top-down, directional approach applies long equity exposure when risks are low and opportunities are high, and to low and/or short equity exposure when risks are high and opportunities are low.
• Four-step investment process – equity valuation, monetary policy and credit conditions, investor sentiment, and volume and breadth momentum – determined tactical market exposure.
• The strategy takes aggressive positions early in trends, while taking advantage of alpha-generating opportunities during down markets.
• Primarily invests in equity indexes and sectors using derivatives; can also invest in other asset classes, to quickly pivot to take advantage of trends, momentum and dislocations.