Taurus  |  Managed by Timothy Merrill

Investor Profile: The Taurus investor acquires exposure to broader market sectors through index exchange traded funds (ETFs). This tactically managed strategy allocates a percentage of the portfolio to specific index ETFs on the basis of sector performance in a given economic cycle phase.

Goal: To invest in 15-20 ETFs at a bargain in a market sector that outperforms in forecasted economic rotations or phases. This market phenomenon occurs when groups of stocks of a sector collectively move in one direction as opposed to other groups.


  • Taurus is an attractive investment vehicle that can be used to deliver superior returns by being opportunistic in the midst of progressive changes in market cycle dynamics.
  • The reward potential of the fund lends it to be used as a return enhancer for portfolios that are already adequately diversified.
  • Seeks to remove subjective and emotional influences from sector selection and capitalize on market underperformers while averting the herd mentality that is too often a misdirected investment.

Sector Select Investment Overview:
Tacticians of the investment philosophy may refer to it as the ‘zero to hero’ dogma.  The sell-off in a particular sector may be an opportunity the manager views as a potentially undervalued if there is no fundamental or applicable justification for this.  The manager will then evaluate if a potential upcoming rotation will have positioned this sector as an outperformer.  In certain cases, there may be a predictable cyclical element in the stocks behave, which may cause certain sectors to raise or fall in popularity.  The business cycle is made up of 4 phases that the functions in the economy, and each phase may have an effect on sector performance.  Factors that affect sector rations are wide-ranging and include industrial production, consumer expectations, interest rate movements, the shape of the yield curve and trends in the currency market.

Additional Details:
Research conducted includes economic, fundamental, and quantitative examination that produces asset allocation investments based on long-term historical performance as a baseline. This framework is enhanced by adding complementary analysis on industries and inflation, as well as fundamental security research among other factors to generate outperformance among equity sectors for Taurus investors.  The approach is a determinant of equity performance over the intermediate term.  Allocation models of the fund’s timeframe depends on which phase the manager views the market.  Client investments may be held in cash until the manager feels there is ample opportunity to capitalize on market conditions.  Distribution timeframe horizons could range from a 1 year to 10 year period cycle per allocation model.  Minimum investment is $25,000.


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