5%
GROWTH STRATEGY
2
The TI Growth Strategy allocation leverages a proprietary systematic trading model designed to generate investment signals by analyzing key market indicators. These indicators include the strength and momentum of the US government bond market, fluctuations in the velocity and degree of stock market volatility, and the internal metrics of the trading program. The signals produced by this model guide a dual investment strategy: maintaining a long position in semiconductor stocks through the SMH ETF and an inverse position in the S&P 500 volatility index via the SVXY ETF. This approach is grounded in a thorough analysis of market dynamics, ensuring that the fund remains aligned with evolving market conditions.
To manage risk more effectively, TI strategically allocates its assets to US government T-bills or a high-yield money market fund instead of ETFs for approximately one-third of the year. This shift occurs during periods when TI identifies heightened market risk and increased anticipated volatility, aiming to reduce exposure to potential downturns. By adopting this cautious stance, the fund seeks to protect its assets and navigate volatile market conditions with greater resilience. The TI Growth Strategy will represent approximately 25% of the overall fund. The following section provides a detailed breakdown of the program’s performance and risk metrics, offering insights into its overall effectiveness and potential for long-term growth.
download tear sheet
2012 - 2024
AVERAGE
ANNUAL RETURN
AVERAGE TIME
INVESTED IN MARKET
SPY
TI
SPY
TI
WHAT TO EXPECT
Expect a different and complementary growth profile
Once the TI Fund is fully positioned within its Balanced Strategy, that portion of the portfolio will align more closely with interest rate movements rather than the equities market. In contrast, the TI Growth Strategy will move more in sync with the stock market. The inverse VIX ETF, which typically rises when the S&P 500 increases, will form 50% to 75% of the Growth Strategy's exposure. Although its movements are directionally tied to the S&P 500, the magnitude of its fluctuations can vary. This ETF always carries a 50% cash position which reduces the volatility the VIX would normally exhibit. Additionally, 25% to 50% of the Growth Strategy will be allocated to the semiconductor index. This fluid ratio has historically worked well with the VIX ETF, and we believe that the exponential growth driven by artificial intelligence, which depends heavily on semiconductors, will enhance overall returns. While past performance does not guarantee future results, this strategic profile has enabled the TI Growth Strategy to consistently outperform the S&P 500 index.​
​​​​
Expect continuous active management
The Growth Strategy adheres to signals from a proprietary, systematic trading program. This approach leads to varying investment periods: there will be stretches of weeks or months where the strategy remains consistently invested in ETFs or money market funds. At other times, the program engages in more active trading. On average, you can anticipate approximately 1.5 to 2.5 trades per month, with the strategy positioned in money market funds around 28% of the year.