--- title: "Newfound Risk Managed Global Sectors: Global Investing With an Eye on Risk" description: Tactical money manager Newfound Research LLC's Risk Managed Global Sectors strategy. --- [![Assembly Wealth](https://www.letsassemble.com/hs-fs/hubfs/Assembly/logos/Assembly-Wealth-Logo-Orange-500px.png?width=300&height=70&name=Assembly-Wealth-Logo-Orange-500px.png "Assembly Wealth")](https://www.letsassemble.com/) The Money Manager People TM [800-541-7774](tel:+18005417774) [![RESEARCH MONEY MANAGERS](https://no-cache.hubspot.com/cta/default/10700/7ecbcb66-3fbb-41e3-b219-c24fb3c769c5.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/7ecbcb66-3fbb-41e3-b219-c24fb3c769c5) [![Client Center](https://no-cache.hubspot.com/cta/default/10700/8691dcb4-caa3-42c2-a810-77b59f461fd2.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/8691dcb4-caa3-42c2-a810-77b59f461fd2) [Home](https://www.letsassemble.com/) WrapManager's Wealth Management Blog When life changes, we can help you thoughtfully respond. [< Back to read another post](https://www.letsassemble.com/wealth-management-blog) # Newfound Risk Managed Global Sectors: Global Investing With an Eye on Risk Posted by [ WrapManager's Investment Policy Committee](https://www.letsassemble.com/wealth-management-blog/author/wrapmanagers-investment-policy-committee) May 14, 2014 - [Tweet](https://twitter.com/share) Tactical money manager strategies have caught the attention of many investors recently, given their ability to participate in rising markets while also seeking to limit capital losses when the market declines. **[Newfound Research LLC's Risk Managed Global Sectors](https://www.letsassemble.com/money-manager-research/newfound-research-llc)** is one such strategy, providing investors access to global equities through an embedded risk-management process. ### The Newfound Global Sectors Strategy offers the following: - A tactical risk management approach - the strategy can move into 100% cash in an attempt to limit large losses1 - Additional equity exposure for your portfolio, specifically geared towards global stocks - Elimination of cognitive biases due to its rules-based nature1 ### Newfound’s Risk Management Philosophy – “Protect and Participate” Newfound acknowledges that many investors may sacrifice participation in rising markets in order to provide themselves adequate downside protection. However, this risk management approach might cause the investor to forego the total return that even a passive investment strategy would offer. Newfound’s investment philosophy helps solve this investor problem. They aim to “protect and participate” – meaning you get exposure to global equities in order to participate in their potential upside, while also maintaining the ability to move 100% to cash when the strategy determines global conditions turn less favorable. It’s a risk managed framework that seeks to limit significant capital loss. Newfound attempts to execute this strategy with their rules-based approach and discipline, and they do not use derivatives, leveraging, or shorting as some other tactical managers might.1 ### The Benefits of a Global, Tactical Equity Strategy Close to 50% of production, sales, and profits from S&P 500 companies are generated abroad, and many growth opportunities exist outside the US. In a 2012 report by The Clearing House, they revealed that Fortune 50 Companies’ foreign revenues (as a percent of total revenue) have increased 14% over the last decade. It stands to reason that investors can potentially capitalize on global growth should it continue over time. To gain access to these global trends, The Newfound Risk Managed Global Sectors strategy invests in 11 global sector ETFs, ranging from Large Capitalization US, Foreign Developed, to Emerging Markets Equities. The strategy weights each sector equally, and applies a quantitative, proprietary rule-based approach to determine which sectors should remain in the portfolio and which should be eliminated or trimmed due to higher risk properties. It can begin to go to cash depending on how many sectors are deemed to be at an increased risk of loss. If all 11 sectors are exhibiting negative momentum qualities that signal further downside, the strategy can move to 100% cash/cash equivalents.1 The quantitative, rules-based approach eliminates cognitive biases, which is another way of saying it takes investor emotion out of the equation. Having a set of rules makes the decision process consistent and repeatable. ### Learn More About Newfound’s Strategies and How You Can Invest If you’d like to learn more details about the Newfound money manager strategies and whether it makes sense as an investment for you, please give one of our Wealth Managers a call today at 1-800-541-7774. You can also take just a few moments to **[request the information here](https://www.letsassemble.com/money-manager-research/newfound-research-llc)**. **[Learning more about a money manager](https://www.letsassemble.com/wealth-management-blog/9-steps-to-researching-money-managers)** and a new investment strategy is the first step to knowing if it makes sense for you. WrapManager can help. [![Like What You've Read? Subscribe Here!](https://no-cache.hubspot.com/cta/default/10700/5ce6db8c-6757-43bb-831d-b67f40d96a4c.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/5ce6db8c-6757-43bb-831d-b67f40d96a4c) --- Sources: 1 Newfound Research Strategy descriptions listed represent a brief outline of the portfolio’s objective. There is no guarantee that any manager or product will be successful in achieving the objective described. The strategy used by the money manager listed is not suitable for all investors. This material does not represent a personalized recommendation and does not reflect individual investor’s risk and return goals nor does it serve as the receipt of, or a substitute for, personalized advice from WrapManager, Inc. or any other investment professional.  [Newfound Research LLC](https://www.letsassemble.com/wealth-management-blog/topic/newfound-research-llc) [![Newfound Research Performance](https://no-cache.hubspot.com/cta/default/10700/9940a6cf-7b41-4ded-874c-9838500cd718.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/9940a6cf-7b41-4ded-874c-9838500cd718) ### Subscribe to Updates [Subscribe to RSS Feed](https://www.letsassemble.com/wealth-management-blog/rss.xml) [![New Call-to-action](https://no-cache.hubspot.com/cta/default/10700/ffe2a394-957b-481b-9f80-4ef176bd6aaf.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/ffe2a394-957b-481b-9f80-4ef176bd6aaf) ### Most Recently Published ### Blog Authors [![Gabriel Burczyk](http://www.wrapmanager.com/hs-fs/hub/10700/file-2347381761-jpg/Athors_Avatars/Gabe-avatar.jpg "Gabriel Burczyk")](http://www.wrapmanager.com/wealth-management-blog/author/gabriel-burczyk) [**Gabriel Burczyk,**](http://www.wrapmanager.com/wealth-management-blog/author/gabriel-burczyk) [Founder & CEO](http://www.wrapmanager.com/wealth-management-blog/author/gabriel-burczyk) [![Valerie De Vol](http://www.wrapmanager.com/hs-fs/hub/10700/file-2457588837-jpg/Athors_Avatars/Valerie-De-Vol-avatar.jpg "Valerie De Vol")](http://www.wrapmanager.com/wealth-management-blog/author/valerie-de-vol) [**Valerie De Vol, **IACCP® Chief Operating Officer](http://www.wrapmanager.com/wealth-management-blog/author/valerie-de-vol) [![Seton-avatar.jpg](http://www.wrapmanager.com/hs-fs/hub/10700/file-2344519198-jpg/Athors_Avatars/Seton-avatar.jpg "Seton-avatar.jpg")](http://www.wrapmanager.com/wealth-management-blog/author/seton-mcandrews) [**Seton McAndrews, **CFP® ](http://www.wrapmanager.com/wealth-management-blog/author/seton-mcandrews)[Vice President - Investments](http://www.wrapmanager.com/wealth-management-blog/author/seton-mcandrews) [![Doug Hutchinson](http://www.wrapmanager.com/hs-fs/hub/10700/file-2347381751-jpg/Athors_Avatars/Doug-avatar.jpg "Doug Hutchinson")](http://www.wrapmanager.com/wealth-management-blog/author/doug-hutchinson) **[Doug Hutchinson,](http://www.wrapmanager.com/wealth-management-blog/author/doug-hutchinson) **[CFA® ](http://www.wrapmanager.com/wealth-management-blog/author/doug-hutchinson)[Director of Research and Trading](http://www.wrapmanager.com/wealth-management-blog/author/doug-hutchinson) ![Katie - square.png](https://www.wrapmanager.com/hubfs/Katie%20-%20square.png "Katie - square.png") [**Katie O'Connor **Director of Client Services](https://www.wrapmanager.com/wealth-management-advisors/katie-oconnor) **Important Disclosure Concerning WrapManager Blogs** Blogs found at this site have been created or supported by WrapManager. The information provided in a blog post prepared by WrapManager or an associated person of WrapManager is generally limited to financial and economic issues, but may include a discussion of general interest items. The views and opinions expressed on this blog are purely the blog authors, and not necessarily those of WrapManager, Inc. Certain blog posts include information pertaining to WrapManager’s investment advisory services and the products and services of unaffiliated money managers. Such information is provided for information purposes only. Accordingly, information provided in a blog should not be construed by any consumer and/or prospective client as a solicitation to effect or attempt to effect transactions in securities or the rendering of personalized investment advice. Any subsequent, direct communication by WrapManager with a prospective client shall be conducted by a representative of WrapManager. Moreover, no client or prospective client should assume content contained on the website serves as a substitute for personalized advice from WrapManager. Different types of investments involve varying degrees of risk, and there can be no assurance that any investment, portfolio or money manager referred to within the blog will be suitable for your individual situation and risk tolerance or will be profitable. WrapManager recommends that you retain a financial professional to provide you with specific guidance regarding your financial situation before investing. Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested. Although the information included in the WrapManager, Inc. website and blog has been obtained from sources WrapManager believes to be reliable, we do not guarantee its accuracy and information may be subject to change without notice. This website should not be regarded as a complete analysis of the subjects discussed. Information on this site should not be relied upon as a substitute for legal, tax or accounting advice by a professional in your local jurisdiction. Comments made by third parties are subject to moderation by WrapManager and may not appear on this blog until they have been deemed appropriate for posting. Also, due to the volume of comments received, not all comments will be posted. WrapManager does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party website linked to WrapManager's web site or incorporated within a blog post. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.     ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "WrapManager's Investment Policy Committee", "url" : "https://www.letsassemble.com/wealth-management-blog/author/wrapmanagers-investment-policy-committee" }, "datePublished" : "2014-05-14T17:00:00.000Z", "headline" : "Newfound Risk Managed Global Sectors: Global Investing With an Eye on Risk", "mainEntityOfPage" : { "@id" : "https://www.letsassemble.com/wealth-management-blog/newfound-risk-managed-global-sectors-global-investing-with-an-eye-on-risk", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.letsassemble.com/hubfs/Assembly/logos/Assembly-Wealth-Logo-Orange-500px.png" }, "name" : "Assembly" } } ```