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Why does TPA’s Relative Rotation Fund perform so well?

Why does TPA’s Relative Rotation Fund perform so well?

The Relative Rotation Fund (RRF) is up 10.63% YTD, while the S&P500 is up 6.53% YTD. Since inception on 4/22/22, the RRF is beating the benchmark by 15.55%; the RRF is up 8.67%, while the S&P500 is down -6.88% (see tables and chart below). Yes, RRF has a short component, which helps it during down markets, but if you notice the YTD performance and look closely at the chart below, you will see that RRF has outperformed the benchmark in up and down markets.

YTD and since inception, the RRF has also beaten a 60/40 portfolio by 7.09% and 16.72%, respectively.

Why does RRF outperform? 4 reasons:

1. The stocks in RRF have been out of favor so their prices have moved down to a point where they can show real future value.

2. RRF strategy incorporates the sector rotation, so it also captures the broader sector moving into favor.

3. RRF’s algorithm does not wait until the stock has run too far, but captures it as it is just starting to come into favor.

4. TPA uses a technical filter to ensure that stocks in the RRF are not overbought or oversold and are not giving false signals.

Learn about and register for TPA-TTG here:

We have also incorporated the RRF strategy for the alpha capture firm Square Point. The Square Point trades are executed during the market on Monday morning each week. So far, this quarter RRF ranks 13 out of 179 institutional traders or the top 7%. RRF has not only proven itself versus the benchmark S&P500, but also versus a large group of investment professionals.

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