Dear Market Edges subscriber,

We know you’re pressed for time. That’s why we created Market Edges.

Identifying investment opportunities around the world and across asset classes is a full-time job. We have over 40 research analysts tracking markets and economies around the globe so you don’t have to. With Market Edges, you get our thoughtful investing research distilled into one tidy, easy-to-digest weekly newsletter. 

Think of it as your weekly risk management guidebook. 

How It Works

How Our Asset Allocation Model Works

Like a weatherman measuring the changes in barometric pressure to predict evolving weather patterns, what if you could more accurately forecast future market returns? 

That’s why we created our asset allocation model, TACRM (Tactical Asset Class Rotation Model). TACRM’s asset allocation signals are generated using a highly quantitative risk management system. At its core, “TACRM measures volatility as a leading indicator of prices,” explains Senior Macro analyst Darius Dale in the accompanying video detailing how TACRM works.

The model tries to identify shifts in momentum and deteriorating or accelerating breadth to spot asset classes that are breaking out or breaking down. TACRM then quantifies the expected returns of those asset classes and individual factor exposures to generate a diversified portfolio.

Copyright © Hedgeye Risk Management LLC.

About Hedgeye

Hedgeye Risk Management is an independent investment research and online financial media company. Focused exclusively on generating and delivering thoughtful investment ideas in a proven buy-side process, the firm combines quantitative, bottom-up and macro analysis with an emphasis on timing. The Hedgeye team features some of the most highly-regarded research analysts on Wall Street, all with buy-side experience, covering Macro, Financials, Energy, Healthcare, Retail, Gaming, Lodging & Leisure (GLL), Restaurants, Industrials, Consumer Staples, Internet & Media, Housing, Materials, Technology, Demography and Washington policy analysis, including Macro, Energy, Healthcare, Telecom & Media and Defense.

Here’s the breakdown: 
  1. Weekly Asset Allocation – The building blocks of portfolio construction, this breakdown of asset classes we like (and don’t like) is expressed through a simple pie chart with an accompanying slide deck presentation which digs into bullish or bearish signals within each asset class. This perspective puts into context what you’ll read throughout the rest of the newsletter.

  2. Client Talking Points – This is what you (or perhaps your clients) need to know about the prior week. We segment key financial market developments into three concise, but essential bullets.

  3. Chart of the Week – The global zeitgeist captured in one definitive chart. Our Chart of the Week cuts through the noise and highlights what most investors miss with additional insight.

  4. Sector Spotlight – We highlight market analysis from one of our 12 equity Sector Heads who provide the latest intelligence on what’s happening inside sub-sectors of the U.S. stock market, from Retail to Energy, while highlighting some favorite stock ideas.

  5. What the Media Missed – There’s a lot of misinformation out there. By undressing a recent mainstream media market myth we reveal a deeper, market-moving truth.

  6. Around the World – Some of the market trends we’re thinking most deeply about. This go-anywhere segment features insights from our Macro team’s global research – like our latest take on Europe, China or Japan.

  7. The Week Ahead – What to watch. These are the dates and times of important catalysts and key economic data releases to keep a close eye on in the coming week.

If you have any questions whatsoever, please do not hesitate to email our Customer Service Director Matt Moran. He can be reached directly at  

We look forward to working together!

- Hedgeye

Our asset allocation model (TACRM) and CEO Keith McCullough’s quantitative risk range framework are driven by math and purposefully independent from our Macro team’s fundamental research process. This obviously provides a perpetual check on any human biases (and suggests where we may need to re-evaluate existing exposures). 

Basically, it’s another tool we use to “stress test” our investment conclusions.

The ultimate goal of Market Edges? To provide updates on our Macro team’s fundamental research calls but balanced by TACRM’s highly-quantitative asset allocation signals. This combination is designed to keep you ahead of the next big market move. CLICK HERE to read our entire “Macro Playbook.”

Market Edges is designed to answer one fundamental question: What are the big picture macro developments you need to get ahead of to prepare yourself for what comes next?

Each edition of Market Edges is broken into seven distinct sections. We distill the most important macroeconomic developments and identify compelling investing opportunities and risks across the spectrum.