The mission of Drawbridge alliances is to provide registered advisors and financial publishers access to model portfolios that leverage modern financial theories and that deliver higher returns with meaningful lower volatility than commonly recommended “diversify and rebalance strategies”. It is our belief that the path a portfolio takes is just as important as the end result.
We apply the scientific method to investment management. Our investment strategies are based upon academic research and its practical application. We seek real-world evidence and design our strategies using a rules-based framework that is quantitative and free from human emotions.
We believe that risk-management is the most critical element of investment management. The simple laws of compound growth and the sequential nature of investment returns, demand that downside risks be kept to a minimum. Our approach goes beyond traditional methods and looks deep into “process risk”.
Models beat the human forecasters because they reliably and consistently apply the same criteria time after time. In almost every instance, it is the total reliability of application of the model that accounts for its superior performance. Models never vary. They are always consistent. They are never moody, never fight with their spouse, are never hung over from a night on the town, and never get bored. They don’t favor vivid, interesting stories over reams of statistical data. They never take anything personally. They don’t have egos. They’re not out to prove anything. If they were people, they’d be the death of any party..
About Drawbridge Alliances
In 2004 I began publishing investment models so that I could share with investors everywhere, the same rules-based models that I was using as the CIO of St. Louis based advisory.
Over the years, the business evolved and I began to notice that many of our subscribers were financial advisors who were using the models to manage their client’s money.
Then one day I received an inquiry from a large financial publishing company asking if I could develop models for their customers.
Today, that business has become Drawbridge Alliances where we partner with FAs, institutions, and publishers to help them grow their own businesses through the use of our quantitative investment management.
Questions & Answers
What makes Drawbridge Alliance different?
Our subscription/flat-fee service allows provides you the opportunity to save potentially tens of thousands of dollars versus the traditional turnkey platforms.
As well, our traditional TAMP is priced very competitively versus the industry, again providing you cost savings.
Second, we have been publishing models on the internet since 2004. In internet years that is forever ago and makes it one of the oldest online services of its kind.
Drawbridge Alliance delivers more than just investment models. Financial advisors get direct access to Tim and his thirty-plus years of industry experience. We help with marketing materials, support, and assistance in growing your business.
What set's you apart in terms of investment philosophy?
While a lot of investment managers focus on returns, we focus on risks. It is our belief that if risks are well managed then the returns will take of themselves.
The simple math of compound growth and the sequential nature of investment returns requires that investors not only understand this importance but also know how to apply risk management. Risk management is part of our DNA.
What is "rules-based investing" and why do you use that?
Rules-based investing is a process of investing where all decisions to buy and sell as well as what securities are determined in advance through a precise formula.
Human emotion is the single biggest reason as to why investors (professionals included) underperform the market’s returns.
By using a rules-based approach, investors are relying on data rather than emotion to make investment decisions.
However, even rules-based investing can be subject to human interference. There is no one strategy that will outperform the market at all times. Thus, an investor must learn to overcome the desire to switch approaches after a period of underperformance.
Who are Drawbridge Alliance's clients?
Drawbridge Alliance works exclusively with financial institutions and financial advisors, providing solutions to help them manage the wealth of their clients.
Drawbridge also provides white-label investment solutions for financial publishers who can use our models to increase their subscription revenue.
What kind of strategies does Drawbridge Alliance offer?
Drawbridge Alliance offers a suite of equity, multi-asset, and fixed income portfolios. These portfolios are quantitatively managed and are most often categorized as tactical, flexible, or unconstrained.
Our models are typically constructed from ETFs and/or individual stocks.
With an explicit focus on managing downside risk across the suite, our portfolios are often utilized by investors as a satellite sleeve designed to complement traditional asset allocation as most of our models have low correlation to their respective benchmark.
How difficult is to implement the models and how long do will it take?
We believe in keeping it simple.
Models are updated on this website on a password-protected page at every rebalance.
You will receive an automatic notice anytime a model has been updated.
Depending on the size of your practice, your custodian, and any trading software that you may have, you can estimate it may take anywhere from 30 minutes to a couple of hours per month to trade our models.
Some custodians are much better geared for model trading and can make the process extremely easy requiring very little of your time.
Our ETF models are rebalanced on the last day of every month. We recommend that you rebalance your client accounts within a day or two after.
Our stock models are rebalanced weekly but note that some models may go several weeks without recommending a new trade. The weekly rebalance is simply a way the algorithm can monitor for any important changes that may occur.