When driving on ice, you slow down to avoid a crash. But, it’d be foolish to keep driving at a crawl when the road in front of you thaws. With the proper mindset and equipment, you can speed up at times to take advantage of smooth roads in front of you.

Similarly, rather than a binary risk-on and risk-off approach, Blueprint looks to reallocate dollars to similar, stronger positions instead of heading to cash at the first sign of a downtrend.

This important distinction allows us to preserve capital during bear markets and participate in bull markets faster and longer than many other tactical managers.

We accomplish this by:

  • When a downtrend emerges in any given asset class, we “handoff” that exposure to the next asset class experiencing uptrends. This allows us to reduce risk without going completely “risk off.”
  • When an uptrend re-emerges, we “handup” exposure by taking from asset classes experiencing downtrends or, if several asset classes are in uptrends, by shifting exposures back to baseline weightings.

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illustration of Blueprint's risk handoff strategy

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Please reach out for further information about Blueprint’s approach to risk management.

Blueprint Investment Partners is an investment adviser registered under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply any level of skill or training. The oral and written communications of an adviser provide you with information about which you determine to hire or retain an adviser. For more information visit, please adviserinfo.sec.gov and search for our firm name.

The mention of specific securities and sectors illustrates the application of our investment approach only and is not to be considered a recommendation. The specific securities identified and described herein do not represent all of the securities purchased or sold for the portfolio, and it should not be assumed that investment in these securities were or will be profitable. There is no assurance that the securities purchased remain in the portfolio or that securities sold have not been repurchased. For a complete list of holdings please contact your portfolio advisor.

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