Portfolio Models

Portfolio Models

In-house designed and managed investment solutions

In-house designed and managed investment solutions

Portfolios2018-11-20T10:40:05+00:00

Three-Dimensional Investment Approach

Era constructs clients investment accounts using a model-based portfolio management process.  All models are designed and managed in-house directly by the investment advisor.  We take diversification and risk management to the next level using a three-dimensional investment approach adding length and depth to your portfolio. This is an active management process that adapts to a dynamic world.

Each series (Opportunity, Controlled Advance and Prudent Investor) is engineered to address risks and opportunities differently using predefined buy and sell disciplines. Each model is briefly explained below.

Era Capital 3D Box w- White Back

Opportunity Series

The Opportunity Series takes advantage of inefficiencies in the markets. It’s common for quality companies to be mispriced from time to time creating favorable risk/reward ratios in pursuit of capital growth.

STRATEGIC GROWTH OPPORTUNITIES MODEL

Controlled Advance Series

The Controlled Advance Series adjust risk through changing market environments using a custom built multi-variable differential calculus methodology. This active investment system seeks suitable risk to a given investment environment to participate in bull markets while avoiding the bear markets.

Controlled Advance EQUITY INDEX MODEL
Controlled Advance EQUITY INCOME MODEL
Controlled Advance FIXED INCOME MODEL
Controlled Advance High Yield Core Model

Prudent Investor Series

The Prudent Investor Series is your more traditional investment approach. This series of passive portfolio strategies is designed to be held for long duration’s. No active buy-sell discipline is utilized in this series other than advantageous rebalancing over time.

PRUDENT GLOBAL EQUITY MODEL
PRUDENT DIVERSIFIED FIXED INCOME MODEL

Opportunity Series

Strategic Growth Opportunities (SGO)

Opportunity Series

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Principal Investment and Risk Management Strategy

Strategic Growth Opportunities model is a contrarian individual stock strategy that buys fundamentally sound growth companies when oversold according to our proprietary technical research. Subsequently, the portfolio sells a position once it reaches overbought conditions. This strategy only uses individual stocks with market caps greater than 2 Billion and is long only.

Strategy Highlights

Strategic – Data and statistics driven model using sophisticated formulas.

Growth – Seek out companies that have quality fundamentals.

Opportunities – Patiently wait for price anomalies and take advantage of value.

Principal Risks

As with any model that invests in stocks or bonds, the value of your investments will fluctuate over time and you may gain or lose money.

Past performance is no guarantee of future results and no strategy can assure success.

Example Data Used

Apple Example

Controlled Advance Series

Controlled Advance Equity Index Model (EINX)

Controlled Advance Series

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Principal Investment and Risk Management Strategy

Era Capital Management’s “Equity Index Model” invests in broad-based, equity index exchange traded funds (ETFs). The model includes ETFs made up of large, mid and small companies, within domestic indexes such as the S&P 500. Depending on market conditions, the model may use foreign or emerging market equity indexes as well. The model’s primary investment objective is long-term capital appreciation. The Equity Index Model uses the Controlled Advance risk management system. The system is a multi-variable, active allocation strategy that adjusts each position in the portfolio independently. Individual positions are evaluated daily and reallocated based on a three point risk scale (explained in table below). This active investment system seeks the appropriate amount of risk within the current investment environment.

Risk Point Scale Allocation (%)
0 0.00%
1 10.00%
2 20.00%

Number of Securities, Position Size and Allocation Limits

Maximum number of holdings:  5

Maximum allocation per security, approximately 20% of model

Maximum security deviation: +/- 2%

Cash Substitutions

Our Controlled Advance Series is a risk managed system strategy; therefore, at various times individual positions will be held as cash. In addition, short-term fixed income holdings may be used in place of cash or money market instruments.

Principal Risks

As with any model that invests in stocks or bonds, the value of your investments will fluctuate over time and you may gain or lose money.

Past performance is no guarantee of future results and no strategy can assure success.

Controlled Advance Equity Income Model (EINC)

Controlled Advance Series

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Principal Investment and Risk Management Strategy

Era Capital Management’s “Equity Income Model” invests in more focused equity exchange traded funds (ETF’s). The model uses indexes that focus on holdings with above average dividend yields such as Real Estate Investment Trusts (REIT’s), Master Limited Partnerships (MLP’s), preferred stocks and high-yielding common stocks.  The model’s investment objective is an equal mix of current income and long-term capital appreciation. The Equity Income Model uses the Controlled Advance risk management system. The system is a multi-variable, active allocation strategy that adjusts each position in the portfolio independently. Individual positions are evaluated daily and reallocated based on a three point risk scale (explained in table below). This active investment system seeks the appropriate amount of risk within the current investment environment.

Risk Point Scale Allocation (%)
0 0.00%
1 10.00%
2 20.00%

Number of Securities, Position Size and Allocation Limits

Maximum number of holdings:  5

Maximum allocation per security, approximately 20% of model

Maximum security deviation: +/- 2%

Cash Substitutions

Our Controlled Advance Series is a risk managed system strategy; therefore, at various times individual positions will be held as cash. In addition, short-term fixed income holdings may be used in place of cash or money market instruments.

Principal Risks

As with any model that invests in stocks or bonds, the value of your investments will fluctuate over time and you may gain or lose money.

Past performance is no guarantee of future results and no strategy can assure success.

Controlled Advance Fixed Income Model (FIM)

Controlled Advance Series

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Principal Investment and Risk Management Strategy

Era Capital Management’s “Fixed Income Model” invests in broad-based, fixed-income index exchange traded funds (ETF’s) and mutual funds. The model diversifies across fixed-income indexes that focus on holdings in investment grade government and corporate bonds, municipal bonds, high yield corporate bonds and bank loan/floating rate notes. The model’s primary investment objective is current income. The Fixed Income Model uses the Controlled Advance risk management system. The system is a multi-variable, active allocation strategy that adjusts each position in the portfolio independently. Individual positions are evaluated daily and reallocated based on a three point risk scale (explained in table below). This active investment system seeks the appropriate amount of risk with the current investment environment.

Risk Point Scale Allocation (%)
0 0.00%
1 10.00%
2 20.00%

Number of Securities, Position Size and Allocation Limits

Maximum number of holdings:  5

Maximum allocation per security, approximately 20% of model

Maximum security deviation: +/- 2%

Cash Substitutions

Our Controlled Advance Series is a risk managed system strategy; therefore, at various times individual positions will be held as cash. In addition, short-term fixed income holdings may be used in place of cash or money market instruments.

Principal Risks

As with any model that invests in stocks or bonds, the value of your investments will fluctuate over time and you may gain or lose money.

Past performance is no guarantee of future results and no strategy can assure success.

High Yield Core Fixed Income Model (HYC)

Controlled Advance Series

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Principal Investment and Risk Management Strategy

Era Capital Management’s “High Yield Core Fixed Income Model” is designed as a focused fixed income portfolio using high yield municipal bonds and high yield corporate bonds. This strategy seeks a high level of current income while reducing volatility by adding our proprietary Controlled Advance risk management system. The model’s primary investment objective is current income. This active investment system seeks the appropriate amount of risk with the current investment environment.

Suitability

The High Yield Core Portfolio is a fixed income strategy designed to meet the needs of clients who seek high yield, low volatility total returns without investing in stocks. The strategy invests primarily in lower-quality fixed income securities, known as “high yield” or “junk” bonds that present greater risk than bonds of higher quality, including increased risk of default. This strategy is designed for investors who want higher yields than money market funds with minimum fluctuation but understand that daily price fluctuation will occur. This portfolio is not considered to be diversified.

Targeted Asset Classes

High Yield Municipal Bonds

High Yield Corporate Bonds

Cash Substitutions

Our Controlled Advance Series is a risk managed system strategy; therefore, at various times individual positions will be held as cash. In addition, short-term fixed income holdings may be used in place of cash or money market instruments.

Principal Risks

As with any model that invests in stocks or bonds, the value of your investments will fluctuate over time and you may gain or lose money.

Typically, a rise in interest rates causes a decline in the value of fixed income securities. Overall fixed income market risk may affect the value of individual instruments in which the strategy invests. Lower-quality fixed income securities, known as “high yield” or “junk” bonds, present greater risk than bonds of higher quality, including an increased risk of default.

Past performance is no guarantee of future results and no strategy can assure success.

Prudent Investor Series

Prudent Global Equity Model (PGE)

Prudent Investor Series

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Principal Investment and Risk Management Strategy

The Prudent Investor Series is your more traditional investment approach. This series of passive portfolio strategies is designed to be held for a long duration. No active buy-sell discipline is utilized in this series other than advantageous rebalancing over time.

Targeted Asset Classes

S&P 500 – Large Cap Blend

NASDAQ 100 – Large Cap Growth

S&P MidCap 400 – Mid Cap Blend

Russell 2000 – Small Cap Blend

MSCI Emerging Markets – Diversified Emerging Markets

MSCI EAFE – Foreign Large Blend

Principal Risks

As with any model that invests in stocks or bonds, the value of your investments will fluctuate over time and you may gain or lose money.

Past performance is no guarantee of future results and no strategy can assure success.

Prudent Diversified Fixed Income Model (PDFI)

Prudent Investor Series

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Principal Investment and Risk Management Strategy

The Prudent Investor Series is your more traditional investment approach. This series of passive portfolio strategies is designed to be held for a long duration. No active buy-sell discipline is utilized in this series other than advantageous rebalancing over time.

Targeted Asset Classes

Investment-grade Domestic Government Bonds

Investment-grade Corporate Bonds

High Yield Corporate Bond

Floating Rate Notes/Bank Loans

Municipal-bonds

Principal Risks

As with any model that invests in stocks or bonds, the value of your investments will fluctuate over time and you may gain or lose money.

Past performance is no guarantee of future results and no strategy can assure success.

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