Proactive Asset Management Portfolios (PAM): We Change as Conditions Change
Proactive Investing is an active strategy that analyzes changing market conditions and recognizes that it may be prudent at times to be out of the market, to protect principal. This differs from passive Buy-and-Hold programs that stay fully invested at all times.
PAM portfolios are actively managed. They are designed to participate in the majority of long-term market advances, while avoiding major market declines. Most of the time PAM portfolios are fully invested but at times PAM implements an exit strategy by moving to cash. This occurs when the manager believes the risk outweighs the potential for gain.
An exit strategy is important. Exiting and holding cash when risk is believed to outweigh return is an important strategy for protecting principal from large losses during periods of market decline.