Sunrise's U.S. Equity Optimized Growth Program applies a dynamic systematic approach to U.S. Equity investing that is designed to capture most of the S&P 500's upside returns little of its downside volatility and negative returns over the long term. To achieve this, Sunrise employs a set of proprietary quantitative models with the flexibility to systematically allocate to any combination of the nine primary sectors of the S&P 500, a combination of any of those sectors and cash equivalents, or 100% cash equivalents.
S&P 500 sectors are selected and traded systematically using a binary set of models that is either "in" or "out" of the portfolio. Model signals are evaluated over a variety of time frames and the portfolio is adjusted accordingly on a routine intra-monthly basis. Sunrise's process is rooted entirely in technical analysis so that our equity portfolio is managed using a strict rule-based systematic approach and not subject to discretion, human emotion or sentiment.
Security Types Traded
Any of the following ETFs -- XLB, XLE, XLF, XLI, XLK, XLP, XLU, XLV, XLY and BIL.
The Program is designed to deliver much better risk-adjusted returns to investors from U.S. Equities by capturing a large part of any U.S. Equity growth during bull environments but only a small part of any U.S. Equity losses during bear environments.
Strengths of the Strategy
The Program offers a high correlation to the S&P 500 during bull environments and will capture much of the upside in such environments. At the same time, the Program's correlation with the S&P 500 falls significantly during bear environments allowing it to avoid much of the downside in such environments.
The Program has the potential to suffer negative performance during bear environments for the S&P 500 and Sunrise would expect such a result in most cases. However, because of the tactical nature of the Program's methodology and its ability to roll assets out of equities in bear environments, we expect the Program to typically lose significantly less than the S&P 500 during prolonged bear market environments.