MCR Capital Management is an independent Registered Investment Advisor (RIA) in St. Louis. MCR Capital Management embraces a tactical approach to investing in the market. Tactical investing is using proven investment strategies that tell us when we should be invested in the market, and when we should be in the safety of cash. By investing tactically our entire emphasis is reducing risk and severe losses in client portfolios. We have spent the last 16 years developing proprietary stock market indicators that track the major market indexes.
Our primary mission is to avoid market crashes–we believe that missing severe market drops is essential to investment success. Market crashes are often quick and severe events. While bull markets generally evolve over several years of mostly upward movements, a market crash can wipe out several years of gains in a matter of weeks or months. As professional investors, making money is important, but protecting our client’s money is even more important.
An example of the swiftness and severity of a market crash is evident on this chart of the S&P 500 in October of 1987.
We dedicate the majority of our research looking for the subtle signs of the next approaching bear market. Any investment advisor can make money in a bull market, the difference between a tactical investment advisor and a traditional financial advisor is evident at the beginning of a bear market. A traditional financial advisor will tell you that no one can time the market and tell you to have the discipline to “Buy and Hold“.
The reality is that most investors do not have the discipline to stick with their positions for day-after-day, week-after-week, and month-after-month of mounting losses in their retirement accounts. Watching their retirement dreams dwindling away eventually most people will sell and go to cash after devastating losses.
MCR Capital Management has developed proprietary market indicators with the purpose of avoiding devastating bear markets and improving overall returns. The following chart shows the effect of this tactical overlay in action.
Buy and Hold
From January 1, 1995 until February 28, 2014 a $10,000 initial investment in the S&P 500 would now be worth $39347 — a profit of $29347. Keep in mind, you would have had to suffer through the 47% decline of the 2000-2003 bear market, and the gut-wrenching 55% decline from 2007-2009.
Using our proprietary trading model and active investment management, a $10,000 initial investment in the S&P 500 would have grown to over $58461–a net profit of $48461. Our trading model had a maximum drawdown of less than 15%. The model executed 28 trades over that 19 year period, an average of less than 2 trades per year. With a trade commission of approximately $10 per trade, or $280, the net profit is still over $48000 vs $29347. See our report here.
(Green indicates to be in the market, Red to be in cash or cash equivalents)
If you are interested in tactical investing and would like to schedule an appointment, contact us at: 636-789-1402 or send an email to: email@example.com