Our Disclosures

All investments involve risk, including possible loss of principal. 

Not all strategies are appropriate for all investors.  There is no guarantee that any particular asset allocation or mix of strategies will meet your investment objectives.

Diversification does not ensure a profit or protect against a loss.

This information is not investment or tax advice and should not be relied on as such.  Tier One Risk Management, LLC (“T-1”) specifically disclaims any duty to update this information.

Opinions expressed herein are those of T-1 and are not a recommendation to buy or sell any securities.

Forward-Looking Statements:

Information may contain forward-looking statements relating to future events. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” or “continue,” the negative of such terms or other comparable terminology. Although T-1 believes the expectations reflected in the forward-looking statements are reasonable, future results cannot be guaranteed.

Except where otherwise indicated, all of the information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date hereof.

Website is for informational purposes only:

This website is for informational purposes only and the information herein constitutes neither an offer to sell nor a solicitation of an offer to buy securities. Offerings of securities are only made by delivery of the prospectus or confidential offering materials of the relevant fund or Separate Managed Account ("SMA"), which describe certain risks related to an investment in the securities and which qualify in their entirety the information set forth herein. Statements made herein may be materially different from those in the prospectus or confidential offering materials of a fund or SMA.

TIER ONE RISK MANAGEMENT, LLC. (“T-1”) is a consulting firm founded in March 2021. The term consultant does not imply any level of skill or training.  For a complete list and description of all composites, or additional information is available by calling 610.458.7108.

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The T-1 Large-cap Strategy, T-1 Focus Strategy, and T-1 Dividend Select Strategy, composites include all discretionary accounts managed within the defined investment strategy during the periods presented. Composite and Index returns are expressed in US dollars, and reflect the reinvestment of all capital gains, dividends and interest, if any. Investing involves risk; clients may experience a profit or a loss. Past performance is not necessarily indicative of future results.

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The S&P 500® Index is a representative measure of 500 leading companies from leading industries; the index is a benchmark for the large-cap segment of U.S. equity market. Company weights in the index are proportional to firms’ available market capitalization (price times available shares outstanding). A Committee at Standard and Poor’s maintains the index with a focus on liquidity and invest-ability.

FTSE Russell produces and maintains a family of U.S. equity indexes. In the determination of index membership, Russell calculates capitalization and style category breakpoint values based on ranks of U.S. common stocks at each annual reconstitution period using market value of freely-available outstanding shares as of the a specific ranking day each year. Stocks exceeding the breakpoint established for the largest 3,000 stocks become constituents in the Russell 3000® Index (with some adjustments to the constituent list to reduce category changes). Similarly, the largest approximately 1,000 stocks become the Russell 1000® Index. Benchmarks should be used for purposes of comparison only, and the comparison should not be understood to mean that there will necessarily be a correlation between T-1’s returns and the benchmark’s returns. Furthermore, the volatility of the benchmark may be materially different from T-1’s actual portfolio. It is not possible to invest directly in an index.

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T-1’s strategies invest in equity securities; therefore they are expected to experience significantly greater volatility in monthly and annual returns than would likely occur if they invested solely in cash-like investments, and may lose value. Because the portfolios invest in equities, they are subject to additional risks such as stock market risk, investment style risk, and manager risk. Stock market risk is the chance that stock prices overall will decline over short or even long periods. Stock markets tend to move in cycles, with periods of rising prices and falling prices. Investment style risk refers to the chance that returns from the types of stocks in which the strategies invest will trail returns from the overall stock market. As a group, mid- and large- cap stocks tend to go through cycles of doing better or worse than the stock market in general. The periods have, in the past, lasted for as long as several years. Manager risk refers to the chance that the adviser will do a poor job of selecting the securities in which the strategies invest.

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Strategy holdings and characteristics are for a representative account, do not represent all of the securities purchased, sold or recommended for client accounts, and are subject to change. The reader should not assume that an investment in the securities was or will be profitable.

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Annualized Returns: Calculated as the compound geometric average of monthly returns.  The geometric average is the monthly average return that assumes the same rate of return every period to arrive at the equivalent compound growth rate reflected in the actual return data.

Standard Deviation: Measures the dispersion of uncertainty in a random variable (in this case, investment returns).  The higher the volatility of investment returns, the higher the standard deviation will be in any given case.  For this reason, standard deviation is often used as a measure of investment risk.  Values are calculated by applying the traditional sample deviation formula to monthly return data, and then annualized by multiplying the result by the square root of twelve.

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Value-Added (i.e., “Alpha”): The difference between a manager’s annualized return and a benchmark’s (e.g., S&P 500®) annualized return.

Annualized Risk: The variation of a portfolio’s returns around its average return over an annual basis (measured by standard deviation).

Beta: Captures the tendency of a stock’s returns to respond to changes in a market index or benchmark over time; it is a statistical measure of a variability.  For a specific period, an individual stock’s beta is the covariance of the return of the stock with the return of a market index, divided by the variance of the return of the index for the period.  The beta of the market index is 1.0.  A stock with a beta above 1.0 tends to swing more than the market over time, while a stock with a beta less than 1.0 typically swings less than changes in the market index.

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Tracking Error: The annualized standard deviation of value-added, it measures the variation of a portfolio’s returns relative to the benchmark.  Managers with larger bets relative to benchmark tend to have return streams exhibiting higher tracking error.  A manager with a 5% tracking error can be expected to produce positive & negative value-added in excess of 5% in 1 out of every 3 years.

Information Ratio: The ratio of annualized value-added to tracking error.  Higher Information Ratios tell us that a manager is adding more value per unit of active risk.  This is a very useful metric to determine whether a manager is skillful or not.

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Upside capture: Measures the percentage of benchmark gains captured by a manager when benchmark returns are positive (up).

Downside capture: Measures the percentage of benchmark losses endured by a manager when benchmark returns are negative (down).

Sharpe ratio: Calculated as the excess return (i.e., return above a risk-free rate) of an asset class, index or investment strategy divided by the standard deviation of the excess returns over a like horizon.  As such, it is a measure of reward per unit of risk.

“Interactive Brokers LLC is a registered Broker-Dealer, Futures Commission Merchant, and Forex Dealer Member, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organizations. Interactive Brokers does not endorse or recommend any introducing brokers, third-party financial advisors, or hedge funds, including "Tier 1 Risk Management LLC". Interactive Brokers provides execution and clearing services to customers. None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product, or instrument or to engage in any specific investment strategy. Interactive Brokers makes no representation and assumes no liability to the accuracy or completeness of the information provided on this website. 
For more information regarding Interactive Brokers, please visit "www.interactivebrokers.com.” 

This commentary on this website reflects the personal opinions, viewpoints and analyses of Tier One Risk Management, LLC ("T-1") employees providing such comments, and should not be regarded as a description of advisory services provided by T-1 or performance returns of any T-1 Investments client.

The views reflected in the commentary are subject to change at any time without notice. Nothing on this website constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Any mention of a particular security and related performance data is not a recommendation to buy or sell that security.  Tier One Risk Management, LLC manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.

This commentary on this website reflects the personal opinions, viewpoints and analyses of the Tier One Risk Management LLC ("T-1") employees providing such comments, and should not be regarded as a description of advisory services provided by T-1 or performance returns of any T-1 Investments client.

The views reflected in the commentary are subject to change at any time without notice. Nothing on this website constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Tier One Risk Management, LLC manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.