Swiss's investment strategy as outlined graphically in the table on the bottom of this page, illustrates the fund's top down investment approach.
Valuation and the macroeconomic intermediate - to long term prospects for the global stock market, national and regional economic growth stand at the starting point of the investment selection process. Generally, stocks and project sectors that range far above or below their historical valuation bands are considered over- or undervalued. The long and short exposure in the portfolio is determined by the number of sectors that are over -or undervalued.
The timing of the entry and exit points of specific positions is then determined after evaluating proprietary short term indicators, including technical and sentiment models. These carefully (back) tested indicators include volatility studies, options indicators, oscillator based systems and some Fibonacci/cycle based systems.
In addition, SWISS hedges the portfolio in a disciplined manner and downside risk is therefore limited. Individual positions are dynamically adjusted based upon changes in the portfolio weighting due to market events.