The ‘Two-Way Player’ can play both offense and defense and will automatically switch between these roles depending on the flow of the game. The addition of the two-way player adds a tactical dimension to a team by providing additional offensive or defensive support where and when it is needed most.
Traditionally, most equity mandates remain invested throughout the market cycle and will typically follow the pattern of the market in both directions.
The two-way strategy would seek to play offense by overweighting equity exposure during longer-term rising markets and play defense by decreasing equity exposure during longer-term declining markets.
By automating this shift between offense and defense, the two-way player can improve a portfolio’s ability to adapt to changing market conditions by actively managing risk within the market cycle over time.