Global Tactical Rotation® Rotate, not allocate.
Global Tactical Rotation® is how ASYMMETRY® Managed Portfolios move exposure among global markets as price trends change. We rotate toward markets that are rising and away from those that are falling, instead of holding a fixed mix.
A fixed mix keeps holding what’s falling.Rotation follows the trend.
What a fixed mix holds, and what rotation holds.
A fixed mix: held the whole timeRotation: held while the trend is up
Global. Tactical. Rotation.
Global
We look across markets around the world: U.S. and international stocks, bonds, commodities and alternatives, mostly through exchange-traded funds.
Tactical
Exposure changes with conditions. Each market is scored on the direction and strength of its price trend over several time frames.
Rotation
We move toward markets that are rising and away from those that are falling. When many markets fall at once, the portfolio can hold mostly defensive or cash-like positions.
Rotation doesn’t mean constant trading. Positions change when trends change, not on a calendar and not on a hunch.
A fixed mix and rotation, side by side.
| The question | A fixed mix | Rotation |
|---|---|---|
| What it holds | The same weights in every market. | The markets in rising trends. |
| When a market falls | Keeps holding it, and rebalances into it. | Reduces or exits it. |
| In a broad decline | Stays fully exposed. | Can move mostly to defensive or cash-like positions. |
| What it rests on | An assumption that the mix works over time. | The evidence of price trends, as they change. |
| The trade-off | Large declines are part of the deal. | Trends can reverse quickly, so some exits are followed by recoveries. |
No approach avoids every loss. Rotation is designed to reduce exposure to falling markets, not to predict them.
Questions about rotation.
What is Global Tactical Rotation®?
Global Tactical Rotation® is how ASYMMETRY® Managed Portfolios move exposure among global markets as price trends change. We rotate toward markets that are rising and away from those that are falling, instead of holding a fixed mix.
Is it the same as asset allocation?
No. Asset allocation holds a fixed mix and rebalances back to it. Rotation moves exposure toward markets in rising trends and away from markets in falling trends. We rotate, not allocate.
Does rotation mean frequent trading?
No. Positions change when trends change, which can mean long stretches with few changes.
Where is it used?
In ASYMMETRY® Managed Portfolios, alongside the position sizing and planned exits that plan how much each position can lose.
Who owns the name?
Global Tactical Rotation® is a registered service mark of Shell Capital Management, LLC.
See how rotation fits the whole portfolio.
Rotation decides where the portfolio is exposed. Sizing and planned exits plan how much each position can lose. Prices can gap past an exit.
If you write, I’ll read it myself.
Mike Shell, Founder & Chief Investment Officer