We provide a robust money management platform comprised of Tactical, Dynamic and Strategic solutions. We offer unified managed accounts powered by third-party money managers who pursue risk-managed returns. This broad selection allows for effective long-term strategies customized to each investor’s specific risk/reward profile.
Most of us have insurance to provide protection for our cars, our homes, our health, our lives and other valuables ---the goal of insurance is to reduce the risk of large losses. Most investors are unaware they can attempt to invest in a way to try to limit market volatility and large losses.
During a major market correction, many investors don’t sell their equity investments soon enough, thereby suffering losses. And as the market recovers, often times wait too long to re-invest back into the market and miss out on opportunities for gains.
VCM believes that diversification across multiple risk-controlled strategies helps manage wealth for both performance and protection. While each of our strategies has its own methodology and diversification, many incorporate some form of risk management to attempt to guard against large-scale losses. Our strategies include conservative, moderate, and growth-oriented performance goals through strategic, tactical, and dynamic investment models to offer a full spectrum of investment options to meet each investor’s tolerance for risk. VCM is committed to bringing dynamic, scrupulously researched investment techniques, strategies, and portfolios to clients.
Strategic/Passive Asset Allocation
Strategic/Passive Asset Allocation calls for setting target allocations and then periodically re-balancing the portfolio toward those target goals as investment returns skew the original asset allocation percentages.
• The concept is closer in philosophy to a "buy and hold" strategy as it keeps the holdings while reallocating,
rather than an active trading approach.
• Of course, the strategic asset allocation targets may change over time as the client's goals, risk tolerance,
and needs change and as the time horizon for major events grow shorter.
• Strategic investing is a long-term investment approach where the manager is typically 100% invested at all
times regardless of what may be happening in the broad market or the sector/style class the strategy
Example – A strategic “Large-Cap” asset allocation would always be invested in large-cap investments even if the broad stock market or large cap itself was under-performing or losing value for an extended period of time
Dynamic Asset Allocation
Dynamic Asset Allocation is a portfolio management strategy that frequently adjusts the mix of asset classes to suit market conditions.
• Investing in the best performing asset classes striving to allow investors’ portfolios the highest exposure to
momentum and to reap returns if the trend continues. Conversely, portfolios that use dynamic asset
allocation reduce asset classes that are trending lower to minimize loss.
• Dynamic asset allocation typically exposes a portfolio to multiple asset classes to help manage risk.
Portfolio managers may make investments in equities, fixed income, mutual funds, index funds, currencies
and or derivatives depending on the manager’s investment methodology. Top-performing asset classes can
help offset under-performing assets.
Example – Dynamic asset allocation may be invested in let’s say four sectors of the stock market in January but at another point during the year may have sold all four of those sectors and replaced them with other sectors or another asset classes depending on the momentum of the sectors and the methodology of the strategy. Dynamic Asset Allocation does have the flexibility to be 100% invested in cash during market corrections, although it may be at a slower pace than Tactical Asset Allocation.
Tactical Asset Allocation
Tactical Asset Allocation allows for a range of percentages in different asset classes over short and intermediate time-frames.
• These allocations are set at minimum and maximum acceptable percentages that permit the money
manager to take advantage of market conditions within these parameters.
• Thus, a form of market timing is possible, since the money manager can move to the higher end of the range
when equities “risk-on” are expected to do better and to the lower end when the economic outlook is bleak.
Example – Tactical asset allocation may be invested in stocks when they are in an offensive “risk-on” posture or could be invested up to 100% in cash and or fixed income during periods of defense “risk-off” due to high market volatility depending on the methodology of the strategy.
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All investments involve the risk of potential investment losses as well as the potential for investment gains. Prior performance is no guarantee of future results, and there can be no assurance, and clients should not assume, that future performance will be comparable to past performance. No client or potential client should assume that any information presented or made available on or through this website should be construed as personalized financial planning or investment advice. Personalized financial planning and investment advice can only be rendered after engagement of the firm for services, execution of the required documentation, and receipt of required disclosures. Please contact the firm for further information.