Market insight and a highlight of Cabana’s year-to-date performance:
Cabana’s seven portfolios range from “Conservative” to “Aggressive” and include an income strategy and an “Accumulator” portfolio. Performance is as of market close on March 26, 2018 and is presented net of maximum advisory fees and commissions.
All Cabana Portfolios were down for the week ranging from -1.50% (Aggressive) to -0.75% (Alpha Income). High beta was hit the hardest, as would be expected in the current environment. The volatility that we have seen this first quarter is truly remarkable and is evidence of real indecision by market participants across asset classes. For professional investors, this is all part of the process and what makes investing such a worthy endeavor. Nothing of value ever comes easy. However, the market swings we have seen can be terrifying. We know how important it is to communicate consistently and effectively with our clients, so that you know what we are doing to plan for the future, and ultimately strive to protect your money. Our hope, is that this small effort on our part can mean the world to someone who is scared. Along these lines, we prepared a short blog post earlier this week to try and do just that. If you have not read it, please take a look here. For many, this information is intuitive, but for others it might shed some positive light.
This week our algorithm responded to the broad selloff in equity assets and we reallocated back to a more defensive position. This reallocation occurred as of market close on Monday, March 26 (not including Alpha Income). While this whipsaw is no fun, it is consistent with our methodology. We follow a rules-based system and have a plan. We are cautiously bullish at this time and will continue to take the market one day at a time.
Year-to-date net-of-fees performance:
ALPHA INCOME: -1.92%
Performance is presented net of the maximum advisory fees and commissions (2%). Numbers indicated with (+) for positive return and (-) for negative return.
-G. Chadd Mason, CEO
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All performance returns are presented net-of-fees and include the reinvestment of dividends and capital gains. Benchmark comparisons are presented gross-of-fees.
Past performance may not be indicative of future returns. No current or prospective client should assume that the future performance of any specific investment or strategy will be profitable or equal to past performance levels.
All investment strategies have the potential for profit or loss. All strategies have different degrees of risk. There is no guarantee that any specific investment or strategy will be suitable or profitable for a particular client.
Historical performance results for investment indexes and/or categories typically do not show the impact of transaction and/or custodial charges or the deduction of an advisory fee, which may decrease historical performance results. There can be no assurances that a strategy will match or exceed its benchmark.
Some performance returns do not represent actual trading using client assets but were achieved through retroactive application of a model designed with the benefit of hindsight. Model returns have inherent limitations. Specifically, these returns do not represent actual trading and may not reflect the impact of material economic and market factors on the adviser’s decision-making if the adviser had actually managed the client’s money during this time frame.
Different types of investments involve higher and lower levels of risk. There is no guarantee that a specific investment or strategy will be suitable or profitable for an investor’s portfolio. There are no assurances that a portfolio will match or exceed any particular benchmark.
Cabana LLC manages assets on multiple custodial platforms. Performance results may vary based upon differences in associated costs and asset availability within the Cabana Model.