Investment Strategy

Sector Rotation


Strategy Summary

MSCM Sector Rotation strategy is a rules-based momentum approach designed for growth, seeking to capture upside potential while mitigating significant drawdowns over time. The strategy aims to enhance returns and manage risk by dynamically allocating investments to sectors and market segments expected to outperform during specific phases of the economic cycle, adapting to changing market conditions.

The strategy aims to:

Target sectors with high recent momentum for potential higher returns

Allocate to top-ranked sectors using proprietary relative strength measures

Employ our Macro Monitor to assess broad market strength regularly

Shift to historically defensive allocations during market declines

Enhance portfolios while mitigating downside risk

Click on the Sector Rotation Factsheet Below to Download