PERSPECTIVES

These pieces are thoughts, updates, and announcements from Counterpoint’s portfolio managers, Michael Krause and Joseph Engelberg.

Rules of Thumb and A Big Investing Mistake
A common rule of thumb (or, in academic-speak, “heuristic”) is leading investors to see too much promise in too many firms. This mistake has led…
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Outsmart The Crowd By Letting Your Strategy Do The Work
Amid renewed interest in the consequences of a declining interest rate environment, investors should remember: As market narratives shift, a robust, systematic strategy may be…
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How Tactical High Yield Strategies Handle Falling Interest Rates
Bond investors and their advisors are subject to changing attitudes towards interest rate risk, and diminishing worries about rising rates make that point clearer than…
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Increasing the Sharpe Ratio of Your Balanced Portfolio
Allocating to a trend-following strategy in high yield credit can improve both portfolio risk and return compared with traditional buy-and-hold strategies. This finding provides advisors…
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The Not-So-Safe 60/40 Portfolio
A 60/40 split between buy-and-hold positions in stocks and bonds is a time-honored, set-and-forget, plain-vanilla asset allocation – so much so that it’s often shorthand…
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Tax Advantaged Investing with Tactical Diversification
Trend-following strategies applied to high yield corporate and municipal credit may allow investors to mitigate the downside while seeking reasonable returns. In this piece we…
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The Keys to Smart Equity Investing
In today’s hypercompetitive investment landscape, active investment managers must earn their fees by targeting genuine opportunities to outperform. To do this, managers need to use…
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Vaccinate Your Bond Portfolio
Markets delivered a rough close to 2018. Risky asset prices whipsawed, and a bear market in U.S. equities may have taken hold. Investors who had…
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What’s Going On With High Yield?
As the year draws to a close and many investors are confronting short-term turbulence in riskier asset classes, now is a good time to evaluate…
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Add a Dash of Tactical
The life of the investment advisor is full of challenges. Robo-advisors, indexing, and other low-cost options have entered the market, and clients are increasingly prepared…
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How to Shelter from Macro Shocks
Amid recent sharp daily declines in broad U.S. stock indices, advisors and portfolio managers are once again preparing their clients for possible sharp declines in…
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How To Invest in a Bulletproof Market
As we head into the fourth quarter of 2018, investors have plenty to worry about. From the yield curve pointing to rising odds of a…
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Bigger Isn’t Always Better
Markets always find new ways to challenge investors.  In a difficult environment for quantitative factor-driven strategies, merely having factor diversification, substantial portfolio exposure to short…
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Where Factor Investing Has Worked
Why go invest in Japan, Germany, or Australia when there are plenty of opportunities right here in the U.S? Counterpoint Tactical Equity and Long-Short Equity…
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How Counterpoint Equity Funds Look At International Stocks
Quantitative portfolio decisions can seem mysterious, even to experienced investors. To illustrate how Counterpoint Tactical Equity and Counterpoint Long-Short Equity size up international stocks, we…
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Slim Pickings for Active Bond Managers
Imagine you’re an active bond portfolio manager. Your investors hire you to outperform an index, and you do this by buying the best bonds you…
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Where Did All the Alpha Go?
We all know the 2008 financial crisis completely upended Wall Street. Storied firms disappeared; Dodd Frank ushered in a new regulatory regime; and central bankers…
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There’s a Bubble in Trashing (Some) Active Management
At the end of 2017 Warren Buffett, the most successful stock picker of the 20th century, won a $1 million bet against a hedge fund…
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High Yield’s Exposure to Stock Market Risk
After a steep drawdown and the return of volatility to U.S. stocks in recent weeks, it’s worth investigating the level of stock market risk an…
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How Counterpoint Equity Funds Look At Stocks
A quantitative system that ranks stocks according to factors that have historically explained investment returns is not always easy to grasp in the abstract. To…
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Counterpoint Tactical Income, Tactical Equity, and Long-Short Equity January 2018 Fund…
Tactical Income Update Looking at the past year, 2017 has been friendly to passive indexing strategies. The S&P 500 reached new all-time highs; high yield…
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Counterpoint Mutual Funds, LLC, Announces a Five-Star Morningstar Rating
SAN DIEGO, CA–(Jan 9, 2018) – Counterpoint Mutual Funds, LLC, announced today Morningstar, Inc., a provider of data and research insights on a wide range…
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Dealing With False Signals in Trend Following Strategies
A few weeks of bearish action for high yield indexes and related funds briefly captured market commentators’ imaginations last month. After reaching a high of…
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How and When to Look for a Recession
Nearly a decade after the Federal Reserve’s interventions during the Great Financial Crisis, investors have been questioning whether Fed policy has corrupted the yield curve,…
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Counterpoint Tactical Income and Tactical Equity Fund September 2017 Update
Counterpoint Tactical Income The Fund remains invested in a risk-on posture, positioned in high-yield corporate bonds. Our assessment of the high yield credit market remains…
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Trend Following in High Yield: Appearances Can Be Deceiving
Counterpoint Tactical Income investors have lately raised concerns about fundamental valuations in high yield corporate credit. These concerns are understandable: High yield option adjusted spreads,…
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Are Factor Returns Still A Factor?
As stock indices continue to soar to all-time highs and painful drawdowns remain scarce, investors have begun to question the value of active strategies. They…
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Counterpoint Tactical Income June 2017 Fund Update
“The investor’s chief problem – and even his worst enemy – is likely to be himself.” – Famed investor Benjamin Graham Drawdowns in portfolio value…
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Do Bubbles Exist?
In the Counterpoint Tactical Equity Fund, systematically choosing the right time to take on broad equity market risk is a challenge we continually strive to…
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High Yield in a Rising Rate Environment
The Counterpoint Tactical Income Fund is currently in a “risk on” position, allocating to high yield bond assets. Investors have lately voiced concerns about the…
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January 2017 Update
New Year Update The Counterpoint Tactical Income Fund is currently in a risk-on position, invested in high-yield corporate credit.  Morningstar ranked the Fund’s performance in…
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Counterpoint Tactical Income and Tactical Equity November 2016 Fund Update
Election macro impacts Markets have been working to price in the electoral results. The recent risk-on reaction seems to have resulted from an expected reduction…
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Counterpoint Tactical Income and Tactical Equity September 2016 Update
Counterpoint Tactical Income Fund Update The Fund remains invested in US High Yield Corporate bonds. As of September 15, the High Yield All Cash Bonds…
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Counterpoint Tactical Income and Tactical Equity August 2016 Update
Counterpoint Tactical Income Fund Update The Counterpoint Tactical Income Fund remains invested in US High Yield Corporate bonds. As of August 16, the BofA Merrill…
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Counterpoint Tactical Income and Tactical Equity June 2016 Fund Update
Counterpoint Tactical Income Fund Update The Fund remains invested in high yield credit. As of June 21, the BofA Merrill Lynch High Yield Bond Master…
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Counterpoint Tactical Income and Tactical Equity April 2016 Fund Update
Counterpoint Tactical Income Fund Update The Fund is currently positioned in a “risk-on” manner, holding exposure to high yield bonds. The high yield market began…
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The Buy and Hold Religion
In investing, the following commandments are the religious truths governing the cult of Buy and Hold. If your belief wavers, you risk committing moral blasphemy:…
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Is “Smart” Money Smart?
Investors pay professional money managers because of managers’ reputation for identifying and exploiting mispriced assets in an effort to beat the market. However, recent evidence…
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Mutual Funds involve risk including the possible loss of principal. Investors should carefully consider the investment objectives, risks, charges and expenses of the funds managed by Counterpoint Mutual Funds. This and other important information about the funds is available in their prospectuses, which can be obtained at counterpointmutualfunds.com or by calling 844-273-8637. The prospectuses should be read carefully before investing. The Counterpoint Mutual Funds fund family is distributed by Northern Lights Distributors, LLC member FINRA/SIPC. To reach the Counterpoint sales team, please refer to our contact page.

4337-NLD-4/4/2018

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