The ATAC Rotation Funds are designed to be absolute return, tactical strategies. The Funds seek to rotate between equities or Treasuries based on leading indicators of stock market volatility.
Our Mutual Fund: The ATAC Rotation Fund (Investor Class: ATACX, Institutional Class: (ATCIX): In offensive mode, ATACX can invest in U.S. large-cap ETFs, U.S. small-cap ETFs, or Emerging Market ETFs. In defensive mode, ATACX can invest in long-duration Treasuries or short duration Treasuries.
Our Exchange Traded Fund: The ATAC US Rotation ETF (Ticker: RORO) In offensive mode, RORO can invest in U.S. small-cap and large-cap growth ETFs. In defensive mode, RORO can invest in long-duration Treasuries. The indicators are driven by the behavior of Lumber and Gold, two historically leading indicators of market volatility, which are evaluated on a weekly basis for potential rotations in the exchange traded fund.
Why the ATAC Funds?
- Attempts to provide absolute returns in all investing environments
- Objective, quantitative process not subject to behavioral biases
- Seeks to provide high liquidity and transparency with low fees
- Provides diversification to traditional stock and bond portfolios
The ATAC Funds are managed by Toroso Investments, LLC, an independent registered investment advisor. The strategies were developed by Portfolio Manager Michael A. Gayed, CFA.
5 Reasons to Invest in ATAC Funds
01. Add Diversification Benefits to Your Portfolio
ATAC Funds have a low correlation to both stocks and bonds. As a result, the addition of ATAC funds to an investor’s existing portfolio may provide diversification benefits over time.
02. Ability to Mitigate Risk in Times of Stress
ATAC Funds have the ability to rotate fully into Treasury bond ETFs ahead of periods of equity market stress. Treasury bonds have historically exhibited positive returns on average during down equity markets, allowing ATAC Funds to potentially mitigate risk during difficult periods.
3. Ability to Generate Positive Returns in Both Up and Down Market Environments
The ATAC strategies are not dependent on a specific direction of the equity market. Both the mutual fund (ticker: ATACX/ATCIS) and the ETF (ticker: RORO) have the ability to capture upside in favorable environments by rotating fully into equity ETFs and the ability to generate positive returns in down environments by rotating fully into Treasury ETFs.
4. Hedge Against the Risk of Rising Interest Rates
Many fixed income investors are concerned about the risk of rising interest rates. The ATAC Funds approach have historically exhibited a low correlation to bonds, generating a positive return on average during months in which the 10-Year Treasury yield has risen.
5. Systematic and Objective Process
The ATAC Funds use a systematic and objective process to position into either equities or Treasuries. The process is consistent and repeatable, attempting to evaluate conditions which favor higher or lower stock market volatility. The strategies positions defensively in Treasury ETFs when the odds favor rising volatility and offensively in equity ETFs when the odds favor falling volatility.
PORTFOLIO MANAGERS BIOS
Michael A. Gayed, CFA
As Portfolio Manager, Mr. Gayed helps to structure portfolios to best take advantage of various strategies designed to maximize the amount of time and capital spent in potentially outperforming investments.
Prior to his current role, he served as Portfolio Manager for a large international investment group, trading long/short investment ideas. From 2004 – 2008, he was a Portfolio Strategist at AmeriCap Advisers, LLC. As a member of the investment committee, he performed detailed analysis and helped to structure client portfolios. In 2007, Mr. Gayed launched his own long/short hedge fund, using various trading strategies focused on taking advantage of stock market anomalies.
Mr. Gayed is an active contributor to popular financial websites and has been interviewed on national media, including CNBC and Bloomberg TV/Radio. An award-winning author, Mr. Gayed is a sought after speaker discussing his research and unique approach to interpreting market movements. He has co-authored four award-winning research papers on market anomalies and investing.
Mr. Gayed earned his B.S. from New York University and is a CFA Charterholder.
Michael Venuto, CIO
Michael J. Venuto is an ETF industry veteran with over a decade of experience in the design and implementation of ETF-based investment strategies. He is Co-Founder and Chief Investment Officer of Toroso Investments, LLC. Michael is the lead portfolio for the first actively managed ETF focused on Blockchain (BLOK) companies filed in the US. He is also, behind the launch of the Toroso ETF Industry Index, which measures and monitors the performance of publicly traded companies that derive revenue from the Exchange Traded Funds ecosystem.
Previously, he was Head of Investments at Global X Funds where he provided portfolio optimization services to institutional clients. Before that, he was Senior Vice President at Horizon Kinetics where his responsibilities included new business development, investment strategy, Fintech private equity and strategic initiatives. In 2014, Michael was chosen as one the ETF.COM All Stars for his research and is often quoted as an ETF expert in publications such as Reuters and Barron’s.
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