Athena’s David Berns Talks About Tactical Asset Allocation in Financial Advisor IQ
Athena Capital Advisors’ Head of Quantitative Research spoke with Financial Advisor IQ on tactical asset allocation for an article that was published June 16, 2014.
Berns said that going “too tactical” with an investment strategy can prove to be a difficult way to add value over time. “That’s even before certain types of ‘performance drags’ from things like transaction costs and tax consequences are taken into account,” Berns told reporter Murray Coleman.
Athena’s investment approach incorporates three distinct sources of return, with diversification and compounding returns underpinning the firm’s strategic asset allocations. Tactical allocations allow Athena to capitalize on short-term inefficiencies, while instrument selection – informed by quantitative and qualitative analysis – provides the third source of return.