Global Growth, Go-Anywhere Strategies with “Guardrails”

The BCM Decathlon strategies are tactical, global growth portfolios that use a predictive, quantitative approach and can invest in virtually any investible asset class. Selecting from a prudently managed universe of ETFs, Decathlon’s quantitative system seeks to maximize growth within “guardrails”, or maximum volatility and drawdown targets.

With the ability to shift away from failing asset classes and seek other opportunities, the system is engineered to provide global growth while seeking to move to more defensive positioning when volatility and/or drawdown is predicted to exceed the risk targets.

Decathlon is offered with different levels of maximum volatility and drawdown targets, allowing you to select your desired level of risk.

Predictive, Quantitative and Rules-based Approach Applied to Virtually Every Investible Asset Class

Using pattern recognition technology (PRT), the system analyzes the historical return and volatility data of each ETF in the managed investment universe. The system is designed to create portfolios that have overall drawdown and volatility within the assigned risk targets, and typically trades every 25 trading days.

Identify repeating patterns. The PRT is looking to identify repeating patterns within the return and volatility data that it believes will remain present over the next 25 trading days.

Rank ETFs based on patterns. The system will rank each ETF in the investment universe, 1 through ~110, based on the desirability of the patterns identified.

Invest in the top 10. Approximately every 25th trading day, the 10 highest ranked, risk-appropriate ETFs are included in the portfolios in 10% equal weights.

 View the Decathlon Brochure

BCM Decathlon Strategies

BCM Decathlon Conservative Tactics

7% target for standard deviation and maximum drawdown

80% maximum equity allocation

BCM Decathlon Moderate Tactics

12% target for standard deviation and maximum drawdown

No maximum equity allocation

BCM Decathlon Growth Tactics

16% target for standard deviation and maximum drawdown

No maximum equity allocation

BCM Olympian Dynamic Equity

BCM Olympian Dynamic Equity is an equity only strategy that uses the same system and process as the Decathlon strategies. Instead of ranking and selecting from the entire ETF universe (see more information below on the ETF universe), it selects only from the equity and real estate ETFs.

BCM Decathlon Conservative Aspect*

5.5% target for standard deviation and maximum drawdown

30% maximum equity allocation

BCM Decathlon Moderate Aspect*

10.5% target for standard deviation and maximum drawdown

70% maximum equity allocation

BCM Decathlon Growth Aspect*

14.5% target for standard deviation and maximum drawdown

No maximum equity allocation

*BCM Decathlon Aspect Strategies are only available on the AssetMark™ platform. Please visit eWealthManager for more information, including performance, on the strategies. 

Fit within a client account:

Designed to be a global complement to, or a replacement for a portion of, a buy and hold (strategic) asset allocation/portfolio that seeks alpha while concurrently managing risk.

Setting expectations:

Expect ordinary developed and emerging market stock market movement, but the strategies will seek to avoid large drawdowns, manage volatility and avoid falling asset classes when markets enter longer or more severe periods of duress.

Strategy objective:

Decathlon is not benchmark centric. The strategies seek absolute return over time while staying within their maximum volatility and drawdown targets.

Patterns Break

No system is perfect, and future exogenous events can break a pattern.  This is why the Portfolio Manager has full discretion over the portfolio, including the ability to act within the 25 day predictive window to prevent any position from cascading down too far.

Decathlon Investment Universe

The Decathlon strategies select from a managed universe of long-only ETFs. The universe consists of over 110 ETFs carefully selected to provide the system with diverse options to select from, including broad asset classes to focused or niche ETFs. The investment universe consists of:

U.S. Equity ETFs – Broad U.S. equity ETFs as well as sector, industry, style or market capitalization specific U.S. Equity ETFs.

International/Global Equity ETFs – Broad developed international and emerging market ETFs as well as global country, sector, industry, style or market capitalization specific ETFs.

Fixed Income ETFs – U.S., developed international and emerging market bond ETFs across varying credit qualities and maturities.

Alternatives ETFs – Diverse selection of currency, commodity and real estate ETFs.

Risk and control go hand in hand.

In investing, like mountaineering, you need skilled, experienced hands to guide you to your goals.

And reaching those goals often requires you to take calculated risks. The key is to maintain certain safety controls to avoid a large, catastrophic fall. 

This principle is built into the BCM Decathlon strategies. While we believe that reducing large market losses is important, it should not be at the expense of seeking significant growth for clients.  

"A picture is worth a thousand words."

We look at thousands of charts each week, selecting those that will provoke thought and provide quick insights on just about anything relevant to investors. BCM’s chart blog, Fireside Chartstwice a week, 8-15 charts.

Latest Fireside Charts Here

Want to know if you can access BCM’s strategies?

We are available through many TAMPs, and to hundreds of broker dealers and RIAs. We can help guide you in the right direction.

Fill out this quick form and we will get back to you with the best method to access the BCM Decathlon strategies, or any of our other strategies that may be available to you.

Or call our internal consultants at (844) 401-7699.