Our Adaptive Asset Management approach believes that small adjustments to your asset allocation may not adequately take advantage of a new market environment because shifts in the market environment could have dramatic effects on expected returns. Instead we try to adjust your asset allocation in parallel with the change in the market environment. Therefore, in a very positive stock market environment we may have stock exposure over 100% by using options. However, in a very negative stock market environment we may have a negative stock exposure, equivalent to a "short" position in stocks. The goal of the Adaptive Asset Management approach is to not just beat the performance of a benchmark target allocation, but to maximize your investment's performance.
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