Business Fortune
In a world of economic uncertainty and changes in the market, Broadmark Asset Management LLC stands as a symbol of stability and strategy. Founded in 1999 and headquartered in San Francisco, the firm manages assets worth 1.4 billion in dollars while offering a completely different way of managing market risk and enhancing returns. The company believes in preservation of capital during downturns, and its Tactical Growth strategy is redefining investment management, offering an adaptable yet dynamic pathway through the ups and downs of the equity market to mitigate any of Broadmark's downside risks.
A Vision for Resilient Growth
Broadmark's Tactical Growth executed in 2001 endeavored to protect shareholders from market downturns while gaining exposure to growth. Unlike traditional long/short approaches, it permits fully liquid positions, including 100% cash holdings and shorting the market based on conditions. This flexibility has led to consistent outperformance during market turmoil, with drawdowns surpassing 9%. In the 2008 financial crisis, while the market fell 37%, Tactical Growth gained 16%, demonstrating Broadmark's commitment to risk management without sacrificing alpha for investors.
The Four-Pillar Investment Process
This investment philosophy at Broadmark is very robustly built around a four-pillar process specially designed by the startup's founder and Chief Investment Officer (CIO), Chris Guptill. The qualitative and quantitative nature of the process informs investment decisions and also keeps the portfolio in a situation to capitalize on market opportunities while hedging against risks.
The first three pillars of the process comprise investor sentiment, monetary policy/credit, and equity valuations, enabling Broadmark's team to comprehend broader market conditions. It uses the basis of volume and breadth data from proprietary momentum model informed by a fourth pillar for the ideal timing of entering and exiting the market. This is more comprehensive in nature and enables Broadmark to remain ahead of market trends through rapid reaction.
A Strategy Built for Bear Markets
The Broadmark Tactical Growth strategy is drawn up exactly for market downturns, such as the current epoch of volatility-wracked markets, or bear markets. Over the years, they have recorded average losses of about 30 percent. With the cash in hand and the short sales, Broadmark aims to cushion its investors against the trophy of actual sorrow brought about by market downturn but positioned itself for projected growth when the condition improves.
Such strategies of Broadmark can be invested in by individual investors through mutual funds such as Salient Tactical Growth Fund (FTGWX) and Salient Tactical Plus Fund (SBTIX) for their daily liquidity and exposure to the Tactical Growth approach. These funds along with separately managed accounts give investors tools to take on the inscrutable market today.
Emerging Portfolio Risk Approach
While the equity markets continue gyrating, so do the investment strategies of Broadmark in making risk-averse investments. With such arrangements available, they can be among those helpful instruments accessible to investors seeking their activity participation in future economic gains without capital at risk. The associations broaden its strategic alliance with Salient Partners L.P. while adding an upcoming foray into its set focus on market timing, from which such alliances benefit.
From time to time, Broadmark Asset Management LLC will offer an investment strategy that combines peace with opportunity for eventual gains. Client opportunities are further enhanced by risk management philosophy: tactical execution. Animal House standards are set high for themselves and hence low for other competitors in this asset management field, while preparing for stormy weather from any angle the market may direct its course.
About the Leader
Ricardo L. Cortez, Co- Chief Executive Officer of Broadmark Asset Management LLC, has been successful in letting each member do what they do best because of this results-oriented emphasis on teamwork. The keystone of Broadmark's culture and the source of its success is teamwork.
