Pento Portfolio Strategies
PENTO PORTFOLIO STRATEGIES - INFLATION/DEFLATION DYNAMIC PORTFOLIO
The Pento Portfolio Strategiesâ€™ Model SMA attempts to provide an improved hedging strategy against inflation, while also offering protection against cyclical periods of deflation. We utilize top down proprietary-macro analysis to position the portfolio in broad asset classes, depending on our view of prevailing inflationary and deflationary forces. We then use our technical database to select the best possible securities within these favored sectors based upon the modelâ€™s output.
The Investment Policy Committee convenes weekly where investment themes and strategies are presented and approved by Michael Pento (Committee Chairman). Performance reviews are then conducted on each asset class and individual investment. The Committee discusses the modelâ€™s output regarding the direction of the US dollar, moncy supply trends and the inflation or deflation environment.
Sample Model Components
PPSâ€™s proprietary investment model uses various metrics to determine the macroeconomic environment in relation to the inflation/deflation dynamic. Example criteria include:
Money Supply Growth Indicators:
Pento Portfolio Strategies Model uses a weighted approach regarding its stance on the US dollarâ€™s level and trend, as well as the direction of real interest rates. Based on this outlook we will assign weightings to inflation/deflation hedges. The investable universe includes domestic stocks, non-US stocks, commodities and alternative assets, domestic and foreign bonds, currency ETFâ€™s, volatility investments and short-market strategies. Our options strategy includes covered call writing, along with the purchase of index and sector puts and calls. PPS does not utilize margin.
TO OPEN AN ACCOUNT
24 years investment experience.
Portfolio creator and consultant to Delta/Claymoreâ€™s commodity
portfolios that raised in excess of $3 billion and were distributed through Claymore / Guggenheimâ€™s sales network.
23 years experience in the Financial Reporting Industry
PORTFOLIO REBALANCING AND TURNOVER
Changes to our portfolio are a dynamic process; there is no set schedule for rebalancing. Portfolio rebalancing occurs whenever the model and our investment committee dictate its necessity. PPS also focuses on technical price levels relative to their trading ranges and utilizes an active risk management strategy that seeks to lock in gains and limit losses.
PERFORMANCEClick image to enlarge
Past investment performance is not indicative of future results. Advisory services offered through Pento Portfolio Strategies, LLC. a Registered Investment Adviser.
Holdings represent the largest holdings in the Pento Portfolio Strategies Model â€“ SMA Managed Account as of 09/30/2015. These holdings are subject to change at any time without notice and individual account holdings may vary. The specific securities do not represent all the securities PPS Model - SMA has purchased, sold, or recommended for clients over the past year. The reader should not assume that investments in securities listed above were or will be profitable. Sector diversification represents sector allocations in PPS Model â€“ SMA as of 09/30/2015. These sector allocations are subject to change at any time without notice and individual account sector allocations may vary. This document has been prepared for the intended recipient only as an example of strategy consistent with our recommendations; it is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular investing strategy. All securities involve varying amounts of risk, and their values will fluctuate.
Carefully consider the risks and special considerations associated with investing in the Model â€“ SMA Managed Account. You may lose money by investing in the Model Account.