VL Capital Management 
Risk Parity Strategy  
 
The VL Capital Risk Parity strategy seeks to maximize the benefits diversification through risk-based allocation. The strategy invests globally across stocks, bonds, and commodities, allocating smaller amounts of capital to assets that are more risky and larger amounts to assets that are less risky. The Risk Parity Strategy is composed of assets that provide either a positive expected return or some portfolio diversification benefit over the long term. By spreading risks in a more balanced manner, and adapting to market conditions, the strategy can generate more stable returns over time than traditional approaches.
 
VL Capital also incorporates a macroeconomic overlay into all of its investment strategies to help mitigate systematic risk. The VL Capital Recession Risk Index is the firm’s proprietary, multi-factor macroeconomic model that analyzes the probability of a recession occurring in the U.S. on a monthly basis.
 

Key Information

Inception Date 02 January 2017
Cumulative Return1 42.13%
Management Fee 1.00% Annual
Manager VL Capital Management
Account Structure Separately Managed
Custodian Interactive Brokers
 
 
1. Returns provided net of management fees.
 
2. The information presented herein is for informational purposes only about VL Capital Management’s investment strategies and is not intended as a solicitation to invest. The examples and tables are meant solely to illustrate strategies employed by VL Capital Management LLC. Results should under no circumstances be taken as an expectation of similar profits or returns in the future. Past performance is not necessarily an indication of future returns. The back tested results presented within these materials represents back tested results assuming the strategy, VL Capital Risk Parity Strategy, was in effect from January 2010 through present. Back-tested results are provided solely for informational purposes and are not to be considered as investment advice. Back-tested results are hypothetical, prepared with the benefit of hindsight, and have inherent limitations as to their use and relevance. For example, they ignore certain factors such as trade timing, security liquidity, and the fact that economic and market conditions in the future may differ significantly from those in the past.