OBJECTIVE
Long-term capital growth



UNIVERSE/BENCHMARK
Long-term capital growth



TEAM
Jonathan Tunney, CF
23 years industry experience
BA, Stanford University
MBA, UCLA



Albert Gutierrez, CFA
35 years industry experience
BS, University of
Pennsylvania

test

INVESTMENT PHILOSOPHY AND PROCESS

ATLAS ENHANCED 500

Enhanced Index / Smart Beta Strategy
Separately Managed Accounts


PHILOSOPHY

Atlas equity portfolios utilize a disciplined, academically driven investment process. The “e500” portfolio is an enhanced large cap US strategy based on evidence that certain factors are reliable sources of outperformance and can be quantitatively identified.

  • ValuePrice-to-earnings, price-to-book, price-to-cash flow
  • MomentumThe rate of acceleration of a security’s price
  • Size Market capitalization
  • Reversal Short-term price action

ADVANTAGES

The Atlas strategy has been able to deliver consistent performance via the utilization of multiple factors at once. Combining factors with low and negative correlations provides a higher probability that the overall strategy is generating additional return for the investor. Enhanced index strategies provide the best of both active and passive management:

  • Low fees
  • A systematic & transparent process
  • Higher probability of persistence (vs. active managers)
  • Tax efficiency
  • Better-than-market index returns

PROCESS

SECTOR
TARGETS
INTRA-SECTOR
SECURITY
SCORING
CLIENT
EXISTING
HOLDINGS
OPTIMIZATION
  • Step 1 Sector Targets
    Each sector of the S&P 500 is evaluated based on the momentum factor. Sector targets are set with a maximum of +5% or 2x the benchmark and a minimum of -5% or 0% of the benchmark.
  • Step 2 Intra-Sector Security Scoring
    Within sectors, each security within the S&P is evaluated based on value, momentum and short-term reversal. Scores are totaled and those securities with the highest scores are added to the model.
  • Step 3 Client Existing Holdings
    Within each client’s separately managed account, cost basis of each security is detailed by lot and tax-adjusted returns are fine-tuned.
  • Step 4 Optimization
    Position sizes are a minimum of 0.5% and a maximum of 1.5%. Size constraints combat the problems inherent to cap weighted indexes.