The APS Labs Strategies utilize managers by having them specialize in a particular sector(s), as opposed to employing their full strategy; managers are hired in the specialized area(s), where they have historically been able to create the most consistent alpha. Within the chosen Mandate(s), managers are unconstrained:
- Market Capitalization – holdings are All-Cap, both within mandates and at the aggregate Strategy level
- Holdings can be of any style within a sector
- The number of holdings by mandate can be concentrated as a manager feels appropriate
- Mapping: high correlation >85% to each Strategy broad benchmark index:
- APS U.S. Equity Strategy – Russell 3000 NR Index
- APS International Equity Strategy – MSCI ACWI ex. USA NR Index
- APS Health Care Equity Strategy – Health Care Select Sector SPDR ETF
- Active Share is high at >80% to all major indices (best-fit or broad)
Each Strategy is designed to be generally sector neutral to their broad benchmark index – not taking bets amongst or between the different sectors, either tactically or strategically.