Dan Russo, CMT, Co-CIO of Potomac, joined Zoe Hunt, Host of RIA Channel, to discuss the Potomac Tactically Passive Fund (CRTPX) and the firm’s approach to tactical management.
While Potomac believes in tactical and active management, Russo recognizes the market’s tendency to move higher over time. He explains that CRTPX is designed to capture that upside drift while retaining the ability to move the portfolio to cash during periods of market downside. The strategy seeks to provide market exposure without requiring investors to endure the maximum drawdowns associated with a buy-and-hold strategy.
Russo emphasizes that true tactical management requires the flexibility to move portfolios to cash or money market funds when necessary. He adds that this flexibility can help reduce market exposure during periods of downside, allowing Potomac to target lower beta and lower correlation to the S&P 500.
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