Our Strategies
Absolute Return Strategy
This strategy is designed to provide a positive return regardless of the returns of the broad market indices. The strategy can be broadly classified as market neutral and will generally consist of 50% hedged equity and 50% fixed income. The net equity beta exposure will be limited to 10% and the duration of the portfolio will be capped at 5 years. The portfolio will be constructed with both equity and fixed income funds. In most environments, these distinct asset classes are not highly correlated and therefore this should reduce the risk to the portfolio. The fund's primary goal is to take advantage of the inefficiencies in the closed-end fund market. We believe that through a combination of intense focus and extensive research of the closed-end fund market, that the inefficiencies can be exploited to generate meaningful alpha.
Balanced Strategy
RVP's balanced strategy primarily utilizes closed-end funds and ETFs to build portfolios of equities and fixed income focused on capital appreciation and income. Portfolios are structured to outperform a blend of the S&P 500 and the Barclays Aggregate Bond Index with a goal to beat the blended index by 2% annually over a market cycle. While most accounts are constructed to outperform a 60/40 benchmark (60% S&P/40% Barclays Agg), we can customize the benchmark to meet the client's needs.
Equity Strategy
We have a multi-cap, go anywhere style, with a goal of beating the S&P 500 by 2% annually over a market cycle. The equity portfolios are constructed with closed-end funds and ETFs. RVP believes strongly in mean reversion and has a heavy bias towards out of favor sectors and deeply discounted securities. The portfolio may own fixed income funds when RVP believes that these funds are likely to provide equity like returns.
Fixed Income Strategy
This strategy focuses on maintaining an average credit quality of investment grade and providing above market yield, while preserving capital. The goal is to exceed the return of the Barclays Aggregate Bond Index by 0.75-1% annually over a market cycle. RVP manages both taxable and tax-exempt accounts and its possible to receive income from the account monthly.