Recognizing that risk-based investing could be attractive to advisors and clients in these still-volatile times, The MDE Group has introduced a “comprehensive portfolio solution” called Risk 3.0.
To implement the Risk 3.0 portfolio, the firm uses two strategies in separately managed accounts (SMAs) that have a risk-based approach. The two strategies are called Planned Return Strategy and Third Rail Strategy, according to Wednesday’s announcement.
The firm’s website notes that Risk 3.0 is intended to provide “superior risk-adjusted returns in the current challenging environment” with capital preservation in small market declines; “minimal declines” in periods of “moderate market losses;” and “avoiding the majority of steep market losses.”
The MDE Group’s Founder and CEO, Mitchell Eichen, stated in the release, “Our approach replaces all or most long-only equity exposure with a set of planned returns that substantially reduce those areas of market loss we believe are most probable, while simultaneously multiplying and expanding the most probable areas of market gains.”