Last month I reported that Cambria Investment Management, a popular tactical investment strategist, put out an update titled “Red Light” indicating their cautious market stance. They put their money where their mouth was and positioned their tactical ETF, ticker: GMOM, into mostly bonds and precious metals. So, how have they done so far this year?
Based on results from Morningstar year-to-date through yesterday, Feb 7, they are up +1.89% compared to the S&P 500 of +8.09% and the Morningstar Moderate Target Risk of +5.48% and the World Allocation of +5.40%.
Since this is an ETF, we can track their actual holdings every day. As of yesterday, they have kept a 7% allocation to precious metals, but shifted to a 30% equity weighting mostly in emerging markets, global utilities/healthcare and real estate. So, still cautious, but holding some risk assets in a barbell manner with both risky and traditionally defensive sectors.