The ETI strategy mirrors the philosophy of the Tactical Income strategy in terms of sector allocation and macro views of the market. Instead of individual securities, Hilton selects exchange traded funds that represent the sector of the individual security, thereby further mitigating risk while adhering to the core philosophy of the originating strategy.
While this approach is generally more passive in nature and Hilton’s fee structure is lower than the actively managed Tactical Income strategy, our clients are assured the same level of attention to their investment desires and needs. We like to think of the ETI as an actively managed passive vehicle that presents another layer of portfolio diversification.
Mr. Reilly personally administers and oversees the Efficient Tactical Income strategy and has been instrumental in expanding Hilton’s risk management capabilities. Because the ETI follows the same sector allocation as the Tactical Income strategy, it carries the same low level of volatility with a similar upside potential for returns. Any negative move in a security or related ETF is examined versus its peer group or the market by the investment team so decisions are made quickly and efficiently to preserve capital at all times.