Our Methodologies

crfusion™

crfusion™ is the ability to blend all Corbett Road strategies into a custom portfolio solution. By combining passive, active, tactical, and hybrid strategies, you as the Advisor are able to establish guardrails around your client’s maximum and minimum risk parameters. This creates a more customized and targeted solution that considers both the positive and negative fluctuations that occur throughout a market cycle. The underlying goal of crfusion™ is to enable the Advisor to compete with an established benchmark when the market is considered “healthy” but also provide a mechanism of defense when the market faces significant recessionary pressure.

Tactical

macrocast™ and microcast™ Risk Overlay

Our smarttactical™ Strategies enable your overall portfolio to be more adaptive to changing market environments. These strategies have the ability to invest in any exchange-traded asset class and are not restricted by market cap, sector, or geographic location. They may also hold a substantial fixed income or cash position based upon our macrocast™ or microcast™ indicators.

macrocast™

What is macrocast™?

macrocast™ is the foundation for the risk allocation across most of our tactical strategies. The macrocast™ Score and its trend work to assess if market conditions are favorable or unfavorable for risk assets.

How is the macrocast™ score determined?

Corbett Road examines data across six categories (the “VITALS”) that we believe impact market conditions. Within the VITALS, we examine more than 20 specific indicators that drive the macrocast™ Score. These indicators are then assessed and classified as signaling a positive (+1), neutral (0), or negative (-1) trend. The final macrocast™ Score is the result of the summation of the classified indicators.

microcast™

What is microcast™? How is the microcast™ score determined?

Corbett Road examines data across four specific categories (“TUMS”) that we believe impact near to intermediate-term market conditions. microcast™ assesses more than ten specific indicators within these four categories. Each of the indicators are designed to give positive or negative signals that, in aggregate, generate the microcast™ optimal risk allocation. This determines the allocation split between equity and defensive assets within the strategy.

Active

Fundamental Analysis

In addition to our macrocast™ and microcast™ analysis, we utilize fundamental analysis throughout our equity selection process. Our equity selection is primarily driven by three segments.

Titans

One that is gigantic in size or power; one that stands out for greatness of achievement.

The foundation of the portfolio is built on the backs of Titans. These are generally large, established businesses, with sustainable competitive advantages that support consistent revenue growth, predictable earnings, and high return on invested capital (ROIC). Titans are generally seen as longer-term investments in companies that will likely still be leaders over the next ten years.

Trailblazers

One who must pave a path for themselves. A trailblazer may not have the same opportunity or leg up as others but isn’t afraid to blaze the trail and not look back.

Trailblazers are generally younger or smaller companies. They are in the building phase of their own growth cycle, often reinvest heavily into their own business, and have a long runway ahead. Typically, these are growth or momentum-style investments that offer innovative products or services. They tend to have accelerating earnings or sales growth, exhibit relative strength, and expected margin expansion as they finish laying the groundwork.

Turnarounds

One that is experiencing an abrupt or unexpected change, especially when that change results in a more favorable situation.

Turnarounds are generally value-style investments that are trading at discounted valuations with improving economic prospects. They can also be cyclical stocks that tend to outperform during certain stages of the economic cycle.

Passive

mypath Asset Allocation Portfolios™ (MAAP) are passive, strategic asset allocation solutions focused on risk diversification. By investing in broad-based, passively managed exchange-traded funds (ETFs), these portfolios aim to balance risk across major asset classes to reduce variability in returns.

Passive by nature, strategic by design—our asset allocation solutions offer a simple way to build a broadly diversified core portfolio. Available in allocation mixes spanning the target risk spectrum, our passive strategies establish a client’s long-term base portfolio using low-cost, passive ETF products. While strategic adjustments are made on a year-to-year basis, these portfolios are designed to remain invested throughout the economic cycle and market fluctuations. Providing broad exposure to global equity, fixed income, and real estate markets, our passive solutions can be used as a standalone solution or in conjunction with our other strategies.