During global uncertainty managing asset allocation and downside risk with a defensive approach creates value for investors

PHILADELPHIA, April 03, 2020 (GLOBE NEWSWIRE) -- EAB Investment Group, a SEC Registered Investment Advisor providing a series of proprietary alpha generating and risk mitigating strategies to advisory clients, announced today that its sub-advised James Alpha Managed Risk Domestic Equity Fund (JDIEX) has been designated five stars by Morningstar (as of March 5, 2020). The Fund was top quartile for its YTD and 3-year risk-adjusted returns.

EAB Investment Group implements a defensive and correlation management strategy that seeks to maximize risk adjusted returns over a full market cycle by limiting drawdowns in declining equity markets. 

“The consequences of a systematic correlation and volatility approach have important benefits for investors that more traditional passive and simple volatility dampening funds don’t target. If investors are looking for impactful diversification, JDIEX is a good solution,” said Arnim Holzer, Macro and Correlation Strategist of EAB. “We are pleased with the Fund’s five-star designation from Morningstar as it shows the value of our systematic approach for investors.”   

Ed Boll, Managing Partner at EAB, added," Our systematic approach is structured to over protect downside risk and has outperformed the other funds in our category during market stress. Specifically, according to the Morningstar analysis, the funds 3-year downside capture ratio has been 20% compared to 66% category average. Additionally, the fund has a 3-year standard deviation of 4.18% as opposed to the category average of 8.6% and 13.16% for the S&P 500. If the 12-year bull market is finally coming to an end, we believe our strategy is well positioned.”

In February of this year, the firm also launched The EAB Correlation Defense Index (CDI™), a long short basket designed to provide returns negatively correlated to the S&P 500, that provides a third dimension of diversification during stress environments. For the last two years EAB has been utilizing the CDI for client portfolios through options positioning and for risk signaling purposes. It is now available on Bloomberg terminals through their service (Bloomberg Ticker EABCDI).

About EAB Investment Group
EAB is an SEC registered investment company that provides a series of proprietary alpha generating and risk mitigating strategies for retail, institutional and family office investors. Headquartered in Philadelphia, PA, with offices in New York and Chicago, EAB is a sub-advisor on the James Alpha Managed Risk Emerging Markets Equity and Managed Risk Domestic Equity Fund. The firm works as a risk advisor and seeks to add value by developing strategy, product and hedging solutions using proprietary methods.

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