Stadion Tactical Growth Strategy

The Stadion Tactical Growth Strategy is an allocation portfolio utilizing a proprietary Sharpe ratio analysis to maintain or reduce correlation to equity markets. Broad market ETFs and sector ETFs are over/under weighted based on potential return per unit of risk taken. 

The Stadion Tactical Growth Strategy aims to provide a portfolio with less risk than the broad market. The Strategy uses a proprietary Sharpe ratio analysis to pick lower-risk ETFs and then modifies allocations when needed, based on continuous risk/return analysis.

10 Years of Diversified Investment Returns

The Stadion Tactical Growth Strategy seeks alpha in two ways: ongoing security selection and reducing equity correlation when market risk rises to mitigate the damage during broad market declines. Applying Sharpe ratio analysis to the universe of Exchange Traded Funds (ETFs) identifies both market opportunities and market risk. Equity exposure is reduced when risk is prevalent.


The Stadion Tactical Growth Strategy losses from the 2007-2009 global financial crisis were recovered by 3/31/10. In comparison, the S&P 500 Index recovery took an additional 2 years, until 3/31/12.


Please review the Stadion Tactical Growth Compliant Presentation for disclosures that are integral to your investment decisions. Performance data quotes represents past performance. Past performance is no guarantee of future results. 
Preferred calculations utilize month end data. The hypothetical examples do not represent the returns of any particular investment. 'Growth of $100,000, From the Last Peak' chart peak and recovery dates chosen are the closest month end date to the market peak, and respective recoveries. 

 

A Different Approach to Security Analysis

How we manage the Strategy:

  1. Research
    Sharpe ratio research is conducted daily on 1,800 ETFs. Sharpe ratio, developed by Nobel Laureate William F. Sharpe, has become the industry standard for calculating risk-adjusted return.

     
  2. Analysis
    Sharpe ratio is a tool to compare risk and return characteristics of different types of ETFs. We identify ETFs with persistently high or growing Sharpe ratios.

  3. Selection
    As market conditions and Sharpe ratios change, the strategy can reduce or increase equity exposure. A diversified portfolio of 8-15 ETFs is constructed accounting for market volatility and return potential.

Strategy Quarter-End Allocations

The Stadion Tactical Growth Strategy shifts between domestic equity ETFs, international equity ETFs, and a non-correlated allocation based on our proprietary Sharpe ratio analysis.


Portfolio allocations are a historical reference and no guarantee of how the portfolio will be allocated in the future. Stadion is the source for all of the graphs in this Overview. Past performance is no guarantee of future results. Allocations are subject to change.

Performance as of 12/31/16 (%)

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3 Mo.YTD1 YR3 YR5 YR10 YRSince Inception
Net5.429.219.215.019.126.426.61
S&P 500 Index3.8211.9611.968.8714.666.957.95
Morningstar Moderately Aggressive Target Risk Index1.349.449.443.849.005.307.11

Performance as of 12/31/16 (%)

Calendar Year Returns (%)

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2004200520062007200820092010201120122013201420152016
Net7.402.979.120.35-23.8332.2018.700.419.9921.499.78-3.429.21
S&P 500 Index10.764.9115.795.49-37.0026.4615.062.1116.0032.3913.691.3811.96
Morningstar Moderately Aggressive Target Risk Index12.798.8515.998.94-30.6527.6415.18-1.9314.3320.185.11-2.679.44

Calendar Year Returns (%)

Performance data shown for 2004 represents a partial year, from the strategy’s inception (4/30/04) through 12/31/04.

Please review the Stadion Tactical Growth Compliant Presentation for disclosures that are integral to your investment decisions. 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 do not incur fees and charges. All Benchmarks composite data supplied by third party vendors, assumes re-investment of all dividends. 

Risk Statistics as of 12/31/16

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Strategy: NetS&P 500 IndexMorningstar Moderately Aggressive Target Risk Index
Beta vs S&P 5000.871.000.84
Standard Deviation13.39%13.94%12.08%
Sharpe Ratio0.400.480.48

Risk Statistics as of 12/31/16

The Statistics presented are defined as follows. Standard Deviation measures the average deviations of a return series from its mean, and is often used as a measure of risk. The Sharpe ratio measures the excess return per unit of deviation, or risk. 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 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 do not incur fees and charges. All Benchmarks composite data supplied by third party vendors, assumes re-investment of all dividends.

Stadion Tactical Growth Strategy

Photo of Paul Frank

Paul Frank,

Senior Portfolio Manager, Tactical Growth Strategy Lead

  • 22 years as a Portfolio Manager
  • 24 years trading experience

Paul Frank joined Stadion Money Management in 2013 as a Senior Portfolio Manager. Prior to joining Stadion, Paul founded Aviemore Asset Management, LLC in 1993 and served as its President until 2013. In 2004 he established the ETF Market Opportunity Fund. He also served as President, Treasurer, Trustee and Chief Compliance Officer of Aviemore Funds from 2004 until 2013. Paul has a Bachelor of Arts in History and Economics from Drew University. He also completed a Masters of Business Administration in Finance from Fordham University's Graduate School of Business Administration in 1992, where he earned the Dean's award for academic excellence and was named class Salutatorian. Outside of the office Paul enjoys spending time with his family, and is an avid hockey fan and enjoys fishing.

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.

Performance data quotes represents past performance. Past performance is no guarantee of future results. Preferred calculations utilize month end data. The hypothetical examples do not represent the returns of any particular investment. Alpha is a risk-adjusted measure of the so-called active return on investment. 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. The MSCI EAFE Index is an unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada. The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index. The Morningstar Target Risk Index family is designed to meet the needs of investors who would like to maintain a target level of equity exposure through a portfolio diversified across equities, bonds and inflation-hedged instruments. The Morningstar Moderately Aggressive Target Risk Index seeks approximately 80% global equity exposure. One cannot invest directly in indexes, which do not incur fees and charges and are unmanaged. Please review the Compliant Presentation for performance disclosures that are integral to your investment decisions. Second chart peak and recovery dates chosen are the closest month end date to the market peak, and respective recoveries. 

Please review the Stadion Tactical Growth 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.