Earlier this year, we featured an excellent resource published by our partners at Arrow Funds called Relative Strength Turns. You can access a PDF of the brochure by clicking here. This research discusses the type of behavior you can expect from a relative strength driven strategy in various market cycles and it makes the case for why relative strength strategies may experience favorable returns in the years ahead.
Interestingly, we have seen this corroborated by the performance of the Arrow DWA Tactical Fund, which employs a largely unconstrained application of relative strength to multiple asset classes. With YTD performance of 10.65% through 6/13/13, it is outperforming 99% of its peers in the Morningstar World Allocation category.
Past performance is no guarantee of future returns.
This strategy is available in the Arrow DWA Tactical Fund (DWTFX) and also as a separately managed account as our Global Macro strategy, which is available on a number of major platforms, including the Wells Fargo Masters and DMA platforms.
Please click here and here for disclosures.
