Cavalier SMAs


Passion. Experience. Diligence.



The assurance of Modern Portfolio Theory (MPT), introduced by Harry Markowitz in the 1950s, had been that a relatively simple, static allocation of assets could weather any market environment.

Three major market corrections in less than 30 years, though, brought a different message to investors: They had to be more agile in adapting their allocations to shifting markets — or suffer the consequences.

We adhere to the theory of adaptive correlation in our portfolio models.  Distinct from the traditional, strategic  buy-and-hold tenets of MPT, adaptive correlation offers a flexible way to off-set short-term market events by gradually, but quickly, reallocating assets to where they will be most effective.

The Case For Adaptive Correlation

Cavalier offers a platform that delivers adaptive correlation ‎strategies to financial advisors. Cavalier’s best in class solutions can help make portfolios more dynamic by systematically turning risk on or off based on market conditions.  By adapting a Cavalier solution, financial advisors can now offer a management  process  to their clients which is designed to deliver relative returns in up markets, protect against losses in down markets and minimize trading costs in client accounts.

Evolution of Money Management

Cavalier’s product offerings, along with deep distribution affiliations, help ensure that advisors and investors have the tools they need  to construct portfolios which can evolve in a dynamic direction while performing admirably in virtually all market conditions.

By integrating adaptive correlation techniques into a portfolio, we believe investors have the potential to out-perform in up markets, while tempering downside risk.