Whitepaper: Dynamic Sector Rotation

By John Rothe, CMT

John Rothe CMT is the Founder and Chief Investment Officer of Riverbend Investment Management

September 15, 2023

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Dynamic Sector Rotation

Strategy Overview: A sector rotation strategy focused on investing in the top sectors and subsectors based on momentum and relative strength. Risk is managed by using stop-losses based on volatility. The portfolio uses ETFs to represent the various sectors and subsectors and can move to 100% cash when appropriate.

Objective: The strategy’s objective is to outperform the S&P 500 Momentum Index, while managing risk to lower drawdowns.

The dynamic sector momentum strategy uses a combination of Momentum, Relative Strength and Risk Management. This white paper analyzes the academic research of these components and combines them to create a momentum, risk-managed strategy.

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John Rothe CMT

Riverbend Investment Management is a Registered Investment Advisor (RIA), established in 2006 with the primary goal to provide actively managed investment strategies to both individual and institutional clients.

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