Stadion Managed Risk 100 Strategy

The Stadion Managed Risk 100 Strategy seeks to complement traditional asset allocation while reducing volatility and correlation.

Stadion Managed Risk 100 Strategy seeks to manage market risk with a proprietary technical analysis process that measures equity risk levels and then allocates the portfolio accordingly. The Strategy can actively shift between equity ETFs and cash/cash equivalents.

Truly Non-Correlated

We believe the Stadion Managed Risk 100 Strategy's lack of correlation in challenging markets demonstrates an aspect of its risk management capabilities.


Maximum Drawdown measures the largest percentage decline from a peak to a trough. Correlation is a measure of how investments move in relation to one another. A correlation of 1 means the two asset classes move exactly in line with each other, while a correlation of -1 means they move in the exact opposite direction. The Dow Jones U.S. Select REIT index is comprised of companies whose charters are the equity ownership and operation of commercial real estate and which operate under the REIT Act of 1960. The HFRI Fund of Funds Composite Index is an equal weighted, net of fee, index composed of approximately 800 fund-of-funds which report to HFR. The London Gold Price Fixing is the procedure by which the price of Gold is set on the London market by five members of the London Gold Pool. Informally the Gold Fixing provides a recognized rate that is used as a benchmark for pricing the majority of gold products and derivatives throughout the world’s markets. The S&P GSCI Crude Oil Total Return Index, a sub-index of the S&P GSCI Commodity Index, reflects the returns that are potentially available through an unleveraged investment in the West Texas Intermediate (WTI) crude oil futures contract. The S&P 500 Index is the Standard & Poor’s Composite Index of 500 stocks and is a widely recognized, unmanaged index of common stock prices. One cannot invest directly in indexes, which do not incur fees and charges.

Stadion Seeks to React to Market Movements, Not Predict Them

We believe that evaluating the risk that accompanies the returns is just as important as evaluating performance.

  1. Analyze risk.
    The Strategy’s proprietary technical analysis considers 18 long-, intermediate-, and short-term measures to determine equity risk levels.

  2. Allocate portfolio.
    Portfolio allocation is driven by equity risk levels, current market trends, and daily technical analysis.

  3. Manage risk through buy/sell criteria.
    Individual holdings: Select 10-15 ETFs based on risk and trend filters. Portfolio level dynamic sell criteria can reduce holdings to only cash/cash equivalents.
    Allocation management: Adjust equity exposure based on proprietary technical analysis.

Actively Managed According to Market Conditions

As market conditions change, the Stadion Managed Risk 100 model uses a number of technical indicators to measure risk. The chart below shows how our model perceived market risk overlayed on the S&P 500 Index.


The S&P 500 Index is the Standard & Poor’s Composite Index of 500 stocks and is a widely recognized, unmanaged index of common stock prices. It is not possible to invest directly in indexes (like the S&P 500) which are unmanaged and do not incur fees and charges. The graph does not include Stadion’s performance. It sets forth the "risk levels" in the market, as determined by Stadion’s investment models, for those periods. Investments are subject to risk and any of Stadion’s investment strategies may lose money. Cash/cash equivalent holdings may include fixed income. 

Please review the Stadion Managed Risk 100 Strategy Compliant Presentation for disclosures that are integral to your investment decisions.

Past performance is no guarantee of future results. Investments are subject to risk and any of Stadion’s strategies could lose value.

Performance as of 12/31/16 (%)

Drag to see table
3 Mo.YTD1 YR3 YR5 YR10 YR20 YRSince Inception
Gross1.829.219.21-2.262.332.126.607.27
Net1.548.008.00-3.361.120.915.025.66
S&P 500 Index3.8211.9611.968.8714.666.957.688.36

Performance as of 12/31/16 (%)

Calendar Year Returns (%)

Drag to see table
199619971998199920002001200220032004200520062007200820092010201120122013201420152016
Gross21.5220.8718.8032.5113.942.572.0114.713.28-2.8111.4910.32-3.735.1112.33-12.3612.446.88-0.02-14.489.21
Net19.1518.5116.4829.9411.700.54-0.0112.461.23-3.6410.259.09-4.813.9310.96-13.5711.005.55-1.20-15.438.00
S&P 500 Index22.9633.3628.5821.04-9.10-11.89-22.1028.6810.884.9115.795.49-37.0026.4615.062.1116.0032.3913.691.3811.96

Calendar Year Returns (%)

Please review the Stadion Managed Risk 100 Strategy Compliant Presentation for disclosures that are integral to your investment decisions. Past performance does not guarantee future results. This performance report should not be construed as a recommendation to purchase or sell any particular securities held in composite accounts. Investments are subject to risk and any of Stadion’s strategies could lose value. The S&P 500 Index is the Standard & Poor’s Composite Index of 500 stocks and is a widely recognized, unmanaged index of common stock prices. One cannot invest directly in an index which is unmanaged and does not incur fees or expenses. The inception date of the Stadion Managed Risk 100 Strategy is 12/31/95.

Risk Statistics as of 12/31/16

Drag to see table
Strategy: NetS&P 500 Index
Beta vs S&P 5000.301.00
Downside Risk6.22%11.45%
Maximum Drawdown-19.82%-50.95%
Standard Deviation11.41%15.11%
Sharpe Ratio0.290.40
Correlation0.401.00
Sortino Ratio0.590.57

Risk Statistics as of 12/31/16

The Sharpe ratio measures the excess return per unit of deviation, or risk. Correlation is a measure of how investments move in relation to one another. A correlation of 1 means the two asset classes move exactly in line with each other, while a correlation of -1 means they move in the exact opposite direction. Up market capture is a measure of a portfolio’s performance relative to an index in up markets. Down market capture is a measure of a portfolio’s performance relative to an index in down markets. The Sortino Ratio, a variation of the Sharpe ratio, differentiates harmful volatility from volatility in general by using downside deviation instead of standard deviation in the denominator of the formula. Standard Deviation measures the average deviations of a return series from its mean, and is often used as a measure of risk. Downside Risk is calculated in the same manner as Standard Deviation, but only those observations below the mean are used in the calculation. Beta is a measure of systematic risk, or the sensitivity of a manager to movements in the benchmark. A beta of 1 implies that you can expect the movement of a manager’s return series to match that of the benchmark used to measure beta. Maximum Drawdown measures the largest percentage decline from a peak to a trough. The index shown is defined as follows. The S&P 500 Index is the Standard & Poor’s Composite Index of 500 stocks and is a widely recognized, unmanaged index of common stock prices. One cannot invest directly in an index which is unmanaged and does not incur fees or expenses. All Benchmarks composite data supplied by third party vendors, assumes re-investment of all dividends.

Stadion Managed Risk 100 Strategy

Photo of Brad Thompson, CFA

Brad Thompson, CFA,

Chief Investment Officer, Investment Committee member

  • 20 years as a Portfolio Manager
  • 29 years trading experience

Brad Thompson joined Stadion in 2006, bringing 20+ years of financial analysis, investment management, and fund management experience with him to Stadion, where he manages the Stadion Portfolio Management team. Prior to joining Stadion, Brad served as the Chief Investment Officer and Chief Financial Analyst for Global Capital Advisors. Brad has a Bachelor of Business Administration Degree in Finance from the University of Georgia, and also holds the Chartered Financial Analyst designation. Brad is a member of the CFA Institute and the Bermuda Society of Financial Analysts and also holds the Chartered Retirement Plan Specialist Designation. Brad has served on the board of the Executive Leadership Council for the American Cancer Society and on the Board of Trustees for the University of Georgia Terry College of Business Student Managed Investment Fund. Brad enjoys watching UGA football and spending time with his family.

Photo of Will McGough, CFA

Will McGough, CFA,

Senior Vice President, Portfolio Manager

  • 5 years as a Portfolio Manager
  • 13 years as a Portfolio Analyst

Will McGough joined Stadion Money Management in 2003. He leads the implementation of model-driven investment decisions and investment/market analysis to fulfill Stadion's investment products’ mandates. Will also helps guide the development of systems and processes critical to achieving scalable growth. A key interface with Stadion's institutional partners, Will is responsible for Stadion's best execution efforts and has played a pivotal role in managing Stadion's operational on-boarding of new products and the Portfolio Management team's launch or integration of them. Will received his BBA in Finance from the University of Georgia and also holds the Chartered Financial Analyst designation. Will is a member of the CFA Institute, the CFA Society of Atlanta, the American Association of Professional Technical Analysts, National Association of Active Investment Managers, the UGA Alumni Association and National Eagle Scout Association. Outside of the office, Will and his wife Casey lead an active community life and stay busy keeping up with their two young daughters and a houseful of dogs.

Photo of Clayton Fresk, CFA

Clayton Fresk, CFA,

Portfolio Manager

  • 3 years as a Portfolio Manager
  • 10 years trading experience

Clayton is a portfolio manager on several of Stadion’s portfolios, including the Alternative Income portfolio. He is responsible for managing the fixed income and cash allocations across Stadion’s suite of products. He conducts in-depth model, market, product, and performance analysis and is a key liaison between the department and Sales and Marketing. He is also a regular contributor to etf.com and was named an "ETF Rockstar" in 2013 by ETF Report. Clayton joined Stadion in 2009, before which he was most recently a Sr. Business Analyst at RiverSource Investments, LLC in Minneapolis, MN. Clayton holds the Chartered Financial Analyst designation and is a member of the CFA Institute and the CFA Society of Minnesota. He also received an MBA degree and a Bachelor's degree in Finance & Marketing from the University of Minnesota. Outside of work, Clayton enjoys traveling, golfing, and playing & watching sports.

Domestic Equity Risk Level As of 02/17/2017

The Domestic Equity Risk Level is designed to measure the overall risk levels in the U.S. market. “Green” is the most favorable reading, indicating that risk levels are relatively low. Generally, when the level is “Green”, the portfolio will be positioned to participate in the market. “Red” means the measure has assessed the market conditions as unfavorable, meaning that risk levels are relatively high. When the level is “Red”, the portfolio will generally be positioned more defensively.

Please review the Stadion Managed Risk 100 Strategy Compliant Presentation for disclosures that are integral to your investment decisions. There is no guarantee that this investment strategy will succeed, and investment results may vary. The investment strategy presented is not appropriate for every investor and you should review with your financial advisor(s) the terms and conditions and risk involved with specific products or services.