Adaptive asset allocation is a form of market rotation. The presumption is you have “some sort of edge over the active market participant in selecting which asset is going to under-perform or outperform with a risk adjusted basis over a shorter term horizon.”
The premise is there are long-term anomalies in markets to take advantage of. In this podcast, Adam Butler, CIO of ReSolve Asset Management discusses if – and when – it’s appropriate to take these risks.