Elevating The Science of Portfolio Construction


The Hanlon All-Weather Models




We’re living in an era of increasingly complex, volatile and unpredictable investment markets which calls for a more intelligent, deliberate and proactive approach to building and protecting wealth.

That’s precisely why we created the Hanlon Investment Management All-Weather Models. Each individual model, is tailored to address the varying needs of investors and features a meticulous investment blend that seeks to achieve the greatest reward for a given amount of risk in bull markets, bear markets and everything in between.

The heart of Hanlon All-Weather Models is a proprietary portfolio construction process. This process fuses together the best attributes of multiple asset allocation methodologies. We start by using Mean-Variance Optimization, then we improve on it with a Black-Litterman approach that produces diversified portfolios designed to weather any financial climate. Finally, we inject tactical and alternative holdings to provide additional downside protection for certain investment models. Diversification is a powerful means of maximizing returns for a given level of risk, and we cast an exceptionally broad net, going well beyond stocks and bonds to include real estate, tactical and alternative investments.

The process of applying these methodologies to develop our strategy is what we refer to as our Essential Portfolio Theory.



How Hanlon Elevates The Science of Portfolio Construction

The heart of Hanlon All-Weather Models is a proprietary portfolio construction process. The result is an all-in-one investment solution that’s unique in harnessing both the long-term efficiency of buy-and-hold investing and the defensive qualities of tactical asset management.


A deep analysis of market conditions that incorporates not only our own views but also the perspectives of some of the industry’s most respected research firms.



We employ a quantitative technique that weighs potential returns against potential risks, with a goal of creating the ideal combination of investment types.



A rigorous screening process evaluates managers, including low cost index based solutions, on a variety of performance and expense metrics.



Final adjustments are made, including alignment of the portfolio with individual investor needs, to include tax considerations.



The portfolio is monitored and periodically reset to target allocations with an eye on cost- and tax-efficiency.


Sample All-Weather Models



The Hanlon All-Weather Growth Model is for investors who possess an aggressive risk tolerance and a long term investment horizon. The investment allocation will vary, but in general will consist of index-based Strategic (buy-and-hold) investments supplemented with actively managed Tactical and Alternative holdings. The Strategic allocation may include US Equities, International Equities, US Fixed Income, Non-US Fixed Income, Commodities, Energy MLPs, and Real Estate. The Alternative allocation may include actively managed mutual funds which may invest in equity, fixed income, and alternative investments, and may also utilize leverage, derivatives, hedging strategies, and both long and short exposure. The Tactical allocation may be invested in mutual funds which will be actively managed and invest 0% to 100% in equity or fixed income holdings, with all money not invested in either equity or fixed income assets being allocated to money market and/or short term treasury assets.

Hanlon Investment Management is an SEC registered investment adviser with offices at 3393 Bargaintown Road, Egg Harbor Township, NJ 08234.

For information pertaining to the registration status of Hanlon Investment Management, please contact us or refer to the Investment Adviser Public Disclosure website, www.adviserinfo.sec.gov.

For comparison purposes, the All-Weather Growth Model is measured against the Morgan Stanley Capital International All Country World Index (MSCI ACWI). The MSCI ACWI is an unmanaged index consisting of equities from approximately 46 different countries encompassing both developed and emerging markets. Indices cannot be invested in directly.

Sample All-Weather Growth Model



Benchmarks:
96% – MSCI All Country World Index (ACWI)
0% – Bloomberg Barclays US Aggregate Bond Index
0% – Bloomberg Barclays Global Aggregate Bond Index
4% – BofA Merrill Lynch 3-Month U.S. Treasury Bill Index


The Hanlon All-Weather Income Model is for investors who possess a conservative risk tolerance and a short term investment horizon. The investment allocation will vary, but in general will consist of index-based Strategic (buy-and-hold) investments supplemented with actively managed Tactical and Alternative holdings. The Strategic allocation will comprise roughly 64% of the model, primarily consisting of equity and fixed income ETFs. The Strategic allocation may include US Equities, International Equities, US Fixed Income, Non-US Fixed Income, Commodities, Energy MLPs, and Real Estate. The Alternative allocation may include actively managed mutual funds which may invest in equity, fixed income, and alternative investments, and may also utilize leverage, derivatives, hedging strategies, and both long and short exposure. The Tactical allocation may be invested in mutual funds which will be actively managed and invest 0% to 100% in equity or fixed income holdings, with all money not invested in either equity or fixed income assets being allocated to money market and/or short term treasury assets.

Hanlon Investment Management is an SEC registered investment adviser with offices at 3393 Bargaintown Road, Egg Harbor Township, NJ 08234.

For information pertaining to the registration status of Hanlon Investment Management, please contact us or refer to the Investment Adviser Public Disclosure website, www.adviserinfo.sec.gov.

For comparison purposes, the All-Weather Income Model is measured against a 60/40 blend of the Bloomberg Barclays US Aggregate Bond Index, and the Bloomberg Barclays Global Aggregate Bond Index, respectively. The Bloomberg Barclays US Aggregate Bond Index is an unmanaged index that tracks the broader US Investment-grade, fixed-rate, and taxable areas of the bond market. The Bloomberg Barclays Global Aggregate Bond Index is an unmanaged index consisting of global investment grade fixed income debt of approximately twenty-four emerging and developed markets. Indices cannot be invested in directly.

Sample All-Weather Income Model



Benchmarks:
0% – MSCI All Country World Index (ACWI)
51% – Bloomberg Barclays US Aggregate Bond Index
40% – Bloomberg Barclays Global Aggregate Bond Index
9% – BofA Merrill Lynch 3-Month U.S. Treasury Bill Index


One Platform. Full Integration. Infinite Potential.

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