When a firm has a strategy that has outperformed the markets since its 2002 inception with reduced market volatility, people notice.  They want to know what accounts for their consistent success in these wildly erratic markets.

Arthur Day of Day Hagan Mutual Funds and Asset Management is highly confident of their firm’s robust weight-of-the-evidence approach with their proprietary tactical asset management process. “There is a very strong demand for what Day Hagan brings to the marketplace,” Day said. “We are not a wait-and-see or buy-and-hold approach. We are truly tactical, relying on a fusion of macroeconomics, fundamentals and technical analysis.”

Day explained that there are two key elements to their strategies: staying true to their models and methodology, and prioritizing risk management over rates of return.

“Our key focus is risk management through our dynamic tactical allocation models,” Day said. “We have a repeatable quantitative process of managing money tactically that provides us the flexibility to seize opportunities in the marketplace as well as avoid exposure in the market in a rational, model-based, unemotional manner.”

The ability to remain flexible, manage risk and allocate to asset classes with the highest probability of success while being able to allocate to cash as a defensive asset class is what ultimately determines the success of a lengthy retirement, regardless of whichever direction the market may move.

“We have the latitude to go where economic data of our own proprietary models lead us,” Day said. “If our indicators reflect increased risk in what’s going on in the global and domestic markets, invariably our models will have us reduce exposure, often raising cash.”

In addition to their proprietary asset management strategies, Day Hagan conducts their own proprietary research under the direction of partner Don Hagan, CFA. Prior to Day Hagan, Hagan was Chief Sector Analyst and Editor for Ned Davis Research, one of the largest independent research organizations in the world.

“Portfolios are constantly being assessed due to our models, which usually results in a monthly rebalancing that occasionally causes dynamic shifts in regards to our equity exposure,” Day added.

Managing exposure is the linchpin. “People are willing to take on more risk when it makes sense and less risk when it doesn’t,” Day said. “We do not rebalance to any static or fixed benchmark, which is the hallmark of our tactical approach.”

According to Day the industry tries to assess risk for clients with simplistic risk questionnaires. The reality is that these risk profiles become outdated the second the market changes, because people’s risk thresholds also change at the same time. “Whether you are assessed as conservative or aggressive, it’s going to have so much more to do with the psychology of the times and what the individual has recently experienced in the market.”

With an estimated $650 million under management today and current opportunities, he projects that number conservatively to at least double by the end of 2016. “Our tactical approach to investing has resonated tremendously with investors and institutions alike,” Day said.

For more information visit: www.dayhagan.com