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WELCOME TO TMP

 

Trowbridge Model Portfolios (TMP)  

Our Mandate

Our models seek to beat our benchmarks with

40% to 50% less volatility.

Why Trowbridge Model Portfolios?

 

Trowbridge offers outsourced portfolio management of unique model portfolios to financial advisors, family offices and institutional investors who desire greater alpha, lower volatility and lower correlations than traditional asset allocation models.  

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We work with our clients to construct and design portfolios that seek to maximize investor goals with a focus on risk/adjusted returns. We offer these solutions for a low fee structure.

Be Unique to win
New Assets

Go beyond the typical 40/60, 60/40 and 80/20 asset allocation models.

Our Process Is Very Different

Our primary objective is to achieve the greatest amount of portfolio alpha given the desired risk tolerance, not a boiler plate approach to asset allocation that can be accessed anywhere.   

 

We attempt to achieve our objective by designing portfolios with uncorrelated absolute returns instead of relative returns. Too many investors fall into believing traditional asset allocation is the best and only way of diversification. We believe that absolute returns provide better uncorrelated return streams that can not be achieved with relative returns derived from traditional asset allocation models.   See our process

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Maximizing the Efficient Frontier

Our models vs. traditional 

asset allocation

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  • Seeks Lower Max Drawdowns

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  • Seeks Lower Volatility

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  • Seeks Lower Correlations to Global Markets

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Trowbridge All Weather

Alternative Allocations Models

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Trowbridge developed an alternative allocation framework that invests in a variety of alternative strategies. The objective of this framework is to  provide diversification away from traditional asset allocation and be less dependent on market direction. The allocation models seek to achieve this objective by allocating its assets among a variety of non‐traditional or “alternative” investment strategies. The model allocates assets among investment managers with experience managing alternative investment strategies and allocates a portion of the model directly to Trowbridge’s Dynamic Alpha Strategy.

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Why Non-Traditional Asset Classes Now?

 

With both equity and fixed income markets expensive relative to historical valuations, primarily caused by excessive Fed induced liquidity, investors need to think about managing portfolio risk more than ever. The traditional "40/60" or “60/40” allocation of equities and bonds may not be enough to meet long-term investment goals. Alternative strategies can help to lower volatility, enhance returns, and allow for lower correlations to traditional asset classes. 

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The Bedrock... Dynamic Alpha 

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Trowbridge's proprietary Dynamic Alpha strategy is the bedrock of the All Weather Alternative Models. The strategy seeks equal to or greater returns over the S&P 500 with 30% less volatility and a max drawdown of 15% over a market cycle.  The strategy invests in the S&P 500 universe with a maximum of 35 stock positions that are equally weighted with a maximum sector weight of 30%. Risk is controlled by reducing portfolio beta based upon the overall strength of the S&P 500. The intent is to invest in individual stocks when the market is trending upward and to move to defensive sectors or reduce portfolio beta when the market is trending down. By initiating these changes, Trowbridge’s strategies seek to reduce drawdowns, while attempting to capture and maximize the potential gains associated with bull-market rallies. This approach strives to outperform the S&P 500 in both bull and bear markets. The Strategy has the ability to move to 100% cash and uses mean-reversion models to exit crowded positions to lock in large gains.

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Understanding Alternatives 101

Try Edge Evaluator to win new business utilizing the All Weather Alternative Models.

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We do all the work for you by creating customized and unique analysis to help you win new business.  See more

Important Disclosure 

1. Trowbridge Capital Partner's (TCP) All Weather Alternative Asset Allocation models placed its first independent client investments in May 2022. The performance information presented in the chart or table represents backtested performance. Backtested performance is hypothetical (it does not reflect trading in actual accounts) and is provided for informational purposes to indicate historical performance had the model portfolio strategies been available over the relevant period. TCP did not offer the model portfolio strategies until May 2022. Prior to May 2022, TCP did not manage client assets using The All Weather Asset Allocation models portfolio strategies. 

2.  Backtested performance does not represent actual performance and should not be interpreted as an indication of such performance. Actual performance for client accounts may be materially lower than that of the model portfolio strategies, and backtested performance should not be considered indicative of the skill of the adviser.

Not all TCP clients follow our recommendations, and depending on unique and changing client and market situations, we may customize the construction and implementation of the model portfolio strategies for particular clients. The performance of custom asset allocations may differ materially from (and may be lower than) that of the model portfolio strategies. Performance results for clients that invested in accordance with the All Weather Alternative model portfolio strategies will vary from the backtested performance provided due to market conditions and other factors, including investments' cash flows, fund allocations, frequency and precision of rebalancing, tax-management strategies, cash balances, advisory fees, varying custodian fees, and/or the timing of fee deductions. As the result of these, and other potential variances, our clients have not, and are not expected to have, achieved the exact results shown since May 2022, when we placed our first investment. Actual performance for client accounts may differ materially from (and may be lower than) that of the model portfolio strategies. 

4. Backtested performance results have certain, inherent limitations. Such results do not represent the impact that material economic and market factors might have on an investment adviser's decision-making process if the adviser were actually managing client money. Backtested performance also differs from actual performance because it is achieved through the retroactive application of model portfolios (in this case, TCP's All Weather Alternative model portfolio strategies) designed with the benefit of hindsight. As a result, the models theoretically may be changed from time to time to obtain more favorable performance results.

5. Backtested performance results assume the reinvestment of dividends and capital gains and rebalancing to maintain the investment objective. In reality, client accounts will be rebalanced either more or less frequently depending on the fluctuation of the funds and the cash flow activity of the client. The performance of the TCP's model portfolio strategies and satellite funds reflects, and is net of underlying managers fee and the effect of TCP’s annual investment management fee of .20%, billed quarterly. 

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