Global Tactical Rotation® is Shell Capital Management’s systematic, momentum-driven approach to dynamic asset allocation across global markets. The strategy evaluates global asset class exchange-traded funds — spanning domestic and international equities, fixed income, commodities, and alternative assets — and dynamically allocates to those exhibiting the strongest positive price trends, while reducing exposure to those in downtrends or deteriorating market environments. Global Tactical Rotation® is a registered service mark of Shell Capital Management, LLC.

The Investment Process

Global Tactical Rotation® evaluates each asset class in the investment universe using quantitative trend and momentum signals over multiple lookback periods. Asset classes with strong, positive trends receive full or meaningful allocation. Asset classes with weak or negative trends receive reduced allocation or are excluded from the portfolio. When broad market conditions deteriorate — as evidenced by multiple asset classes simultaneously exhibiting negative trends — the strategy can shift to predominantly defensive or cash-equivalent positions, substantially reducing overall portfolio risk.

Asymmetric Risk Management

Risk management is the core of Global Tactical Rotation®, not an afterthought. By systematically reducing exposure to asset classes in downtrends, the strategy attempts to participate in rising markets while avoiding the most damaging phases of bear markets. This dynamic, trend-responsive positioning seeks to produce asymmetric returns: capturing meaningful portions of global bull markets while limiting participation in global bear markets.

The Power of Diversification Through Rotation

Unlike static allocation strategies that maintain fixed weights regardless of conditions, Global Tactical Rotation® benefits from the reality that different asset classes lead and lag at different points in the economic cycle. When domestic equities are in downtrend, international markets, bonds, or commodities may be in uptrend — allowing the strategy to remain invested in positive-trend assets rather than cash, improving overall returns while maintaining risk discipline.

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