NEEDHAM, MA, October 18, 2016 – Beaumont Capital Management (BCM), a leading provider of tactical, ETF-based investment solutions, announced the launch of two new smart beta solutions, the BCM Paradigm Series. The Paradigm Series includes BCM Paradigm Tactical Fixed Income and BCM Paradigm Tactical Factor Selection, which have inception dates of 10/1/2015 and 6/1/2015, respectively. The Paradigm process seeks risk-adjusted returns and downside protection through rules-based analysis of investor behavior by identifying shifts between ‘normal’ and ‘volatile’ markets. The Paradigm Series broadens the range of Beaumont Capital Management’s offerings and provides new solutions to meet the challenges of evolving markets and the demands of today’s investors.
“Lots of smart beta, or factor-based ETFs, have been launched recently, but few strategies, in our opinion, seek to use these products in a constructive way,” said Eric Biegeleisen, BCM’s Director of Quantitative Research and Portfolio Manager of the Paradigm strategies. “With Paradigm, we are striving to use smart beta to pursue alpha.”
Through the Paradigm investment process, ETFs are examined for their relative and absolute levels of volatility and then categorized as either ‘normal’ or ‘volatile’. The normal candidates are then allocated based upon their relative attractiveness, which leads to the construction of a portfolio seeking positive returns, while minimizing volatility and drawdown. The strategies’ quantitative models analyze each ETF for inclusion in the portfolio daily and rebalances typically occur weekly.
“Based upon the continued flows to smart beta, it is clear that investors today find significant value in the benefits offered by smart beta products, particularly those that seek to provide downside protection,” said Biegeleisen,. “The Paradigm investment thesis is designed with minimizing portfolio drawdowns as its primary objective. This ultimately allows the strategies to ideally deliver alpha that investors need for long-term financial planning and portfolio growth. We believe the best investment processes include a good defense.”
BCM’s new strategies align with the firm’s philosophy of delivering relative returns in up markets, while aiming to offer defensive capabilities in changing market conditions. In addition, the new strategies are consistent with BCM’s desire to fulfill its mission to offer asset transparency and low cost solutions.
“True to its name, the BCM Paradigm Series seeks to identify subtle, but important changes in behaviors, to gain an early indication of dramatic market shifts,” said Bob Peatman, BCM’s Director of National Sales. “We believe this approach is particularly relevant for all types of investors in today’s complex and volatile markets. When used together, the Paradigm strategies offer a portfolio solution that seeks to balance core equity and fixed income needs for growth, with defensive versatility and overall stability.”
About Beaumont Capital Management (BCM)
Beaumont Capital Management provides tactical, growth strategies to advisors, institutions and retirement plan providers. BCM’s rules-based, defensive-oriented investment solutions seek to provide growth while avoiding large bear market losses. The firm’s tactical, ETF-based portfolios offer cost-effective, active management for virtually any investor, and the TDFs are DALBAR certified. Created in 2009, Beaumont Capital Management is a separate division of Beaumont Financial Partners, which traces its history to 1981. Beaumont as a firm has approximately $3.7 billion in AUM & AUA as of 9/30/16. For more information, visit www.investbcm.com.