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F-Squared CEO Howard Present on strategies to boost your investments while minimizing the risks to your portfolios.
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What isn't Howard president says that volatility may just be the very reason he's seen more than six point five billion dollars flow in -- she is firm.
Over just the last year.
Wanna go along for the ride Howard is the CEO and president of at squared equipping investors with all the safety gear.
Well but that's important to point out it's very defensive what -- doing here.
And that's attractive to people.
Sure as you know it's not so much a defensive mentality all day long but we always try to find a way when they feel with a few risks the portfolio.
We give you full market exposure of the markets heading up for a circuits in a difficult markets like 2008 we can.
And that's -- strategy that really making a compact you can do that in a single day can you not.
Technically we can we go 100% to cash we've got as much as 50% to cash in one day when was the last time does that.
-- them lesson we went to big cash move within two weeks was mid August we went from fully invested a 50% cash.
Position and remember -- in the US got downgraded at that point yes it is yes pet and -- -- and Howard.
Hasn't done that portly bacterium is you are a 100%.
Invested -- in US equities.
You don't see value and anything elsewhere on the planet.
Well that's within our US equity strategy so we have some other ones that invest international equities so for example a fixed income side we actually are fully invested as far as all the multi sector.
Exposure as well.
But if you think about the US where we do the ability of dropping individual sectors and go on a cash no cash today we were about six months ago -- had 50% cash position.
OK what if I got all -- it obnoxious.
Not really my style.
But to say no risk no reward Howard what's the point.
Well you know I think the gains changed where we're no longer worrying about track and benchmark up and down.
Last bull market was great last bear market really cause a lot of pain.
So we think what we do is the equivalent of putting an -- back on investments and you think of a -- you get any always -- he -- It's nice -- the -- there in case she needed.
In the world of investing its diversification secede felt our ability to be able to kick on the brakes temporarily and -- -- back in the market is equal of -- back let's.
Let's look at your your most of the -- widely helps in guest thinks -- you hold -- top holdings and how do you pick.
Something that's going to have the largest percentage in this fund.
Well we actually she's a little bit because we don't worry about pick in the largest once we only invest in sectors we invest -- -- -- And so we always equal weight them.
So we -- -- technology which we do we don't know if we -- like utilities who do on the wrinkle waited so the sectors are equal weighted and then within their of the stocks are market cap weighted -- -- -- -- I don't get the whole basket we do get a lot of these top names are template.
Are you pro US right now obviously mean -- US centric but but do you feel that the -- there's an optimism yet or is Europe just casting this gigantic.
Hurricane slash dark cloud whatever you wanna -- over us.
Well they are plot.
We're fully invested so we're still bullish in regard we're not a 100% there -- so where -- -- -- little defensive.
And in regard to the direction we're -- still trending the right way and even though we had a really ugly may.
June stabilize a little bit more -- and on a year to date basis quality sort of sometimes lose support for the trees.
Were on a pretty good rock right about 6% for about familiar now that's were we were a year ago so hopefully August -- in a repeat a last year.
Coming up power -- could go through four important sectors and talk about which wants to love and which wants to forget about I mean 0% exposure he hasn't somebody's in here.
