December 11, 2018

SGH Macro Advisors, a Greenwich CT-based macroeconomic policy research firm, recently launched a model portfolio to complement its core offerings.  Model portfolios for macro research are unusual, unlike for stock research.

The new service, which requires a separate subscription for access, is designed to assist with monetizing the firm’s policy intelligence by providing real time alerts and reports on a model portfolio managed by Richard Berthiaume, a former protégé of Paul Tudor Jones who also worked at policy researcher Medley Global Advisors with SGH Macro founder Sassan Ghahramani.

The model portfolio, comprised of futures, foreign exchange positions, and sectoral ETFs, is adjusted based on the firm’s research insights as well as cross-asset market structure and pricing monitors.  Subscribers receive alerts and worksheets detailing position changes, underlying holdings, numerical rankings across four inputs for each tracked security, and the resulting action lean.  The product also includes a weekly summary of the dominant macro, policy, political, and market structure themes driving the portfolio.

The model portfolio originated in March after Berthiaume joined the firm as Chief Investment Officer of a separate subsidiary, SGH Macro Capital.  Unlike other model portfolios, SGH’s subscription product is based on a live portfolio seeded with investments from Ghahramani and Berthiaume.  No outside money is currently accepted.

SGH Macro was founded in 2009 by Sassan Ghahramani, who was previously head of Medley Global Advisors.

Our Take

Model portfolios are an excellent tool for making research more actionable, as well helping to establish performance benchmarks for the research.  Model portfolios are not uncommon for stock research, especially among research firms serving the wealth management segment such as Morningstar, Argus or CFRA.

However, model portfolios are rarely applied to macro research.  Rarer yet are those based on a live portfolio managed by a former hedge fund trader.  Although SGH Macro has not made the step yet, it would not be surprising if it eventually began managing outside money, following in the footsteps of macro researcher Gavekal whose money management affiliateGavekal Captial  currently manages $1.1 billion in assets.

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