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Equity & Commodity Rotation SMA
Split Rock Private Trading & Wealth Management strategically manages its Equity & Commodity Rotation SMA by continually monitoring which phase of the economic cycle we are currently in. Split Rock then invests in companies that are best-positioned within the current cycle. On an ongoing basis, Split Rock makes tactical adjustments based on geopolitical events and various micro and macro-economic factors.
Split Rock Private Trading & Wealth Management strategically manages its Equity Rotation SMA by continually monitoring which phase of the economic cycle we are currently in. Economic cycles are divided into 4 separate phases: early cycle, mid cycle, late cycle, recession. Based on which cycle we are in, we feel that some sectors may stand to benefit over others. For example, in a recessionary phase, defensive stocks such as consumer staples tend to outperform the wider market. Regardless of high unemployment and economic recession, people still need consumer staple companies to provide them with food, beverages, toilet paper, soap, etc. Inversely, in an early cycle recovery, consumer discretionary stocks tend to outperform. For example, as unemployment falls, more people have money to spend on discretionary items such as new tv’s, cars, etc.
Our strategy is driven primarily by fundamental analysis. We tend to favor companies with consistent growth and stability of earnings and dividends, limited debt, low P/E multiples relative to peers, and strong cash flows. We supplement our research with technical analysis, focusing on moving averages and support levels, as well as identifying current and potential industry trends.
Our research begins with all publicly traded companies listed on the NYSE, NASDAQ, and AMEX. We then identify sectors that will stand to benefit from the economic phase we believe we are currently in or evolving into. We then screen the stocks within the identified sectors using fundamental and technical analysis. We conclude by cross checking our internal research with other well-respected analysts recommendations before we make our final selections.
Our Allocation Discipline consists of the following:
Rebalancing techniques are based on either tactical or performance related adjustments (through Sell Limit or Stop Orders). Following trades, proceeds are used to rebalance existing holdings, held in cash for future buying opportunities, or used to enter new positions.
Our sell discipline is based on many factors including but not limited to:
1. Strategic and tactical adjustments as discussed earlier.
2. Using trailing limit orders to help protect gains or minimize losses.
3. Ongoing fundamental and technical analysis.
Duluth, Minnesota Office
120 E Superior St, 3rd floor
Duluth, MN 55802
Toll Free: 877.979.3262
CLOQUET, MINNESOTA OFFICE
1618 CLOQUET AVENUE
CLOQUET, MN 55720
TOLL FREE: 877.979.3262
There are no warranties implied. Split Rock Private Trading (“Split Rock”) is a registered investment adviser located in Duluth and Cloquet, MN. Split Rock may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. Split Rock’s web site is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of Split Rock’s web site on the Internet should not be construed by any consumer and/or prospective client as Split Rock’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. Any subsequent, direct communication by Split Rock with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of Split Rock, please contact the state securities regulators for those states in which Split Rock maintains a registration filing. A copy of Split Rock’s current written disclosure statement discussing Split Rock’s business operations, services, and fees is available at the SEC’s investment adviser public information website – www.adviserinfo.sec.gov or from Split Rock upon written request. Split Rock does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Split Rock’s web site or incorporated herein, and takes no responsibility therefor. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.This website and information are provided for guidance and information purposes only. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy. This website and information are not intended to provide investment, tax, or legal advice.
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