The RiverFront Strategas Blue Chip Opportunities portfolio (RSBCO) has an objective to outperform the S&P 500.
RSBCO is based off of the Strategas New Sovereign portfolio model provided by Strategas Asset Management (“SAM””). Strategas’ New Sovereigns Portfolio was constructed on the idea that in times of market stress, investors would seek to shelter capital in the domestic equities that were perceived by the market to have comparable sovereign-like features, specifically low credit default swap (CDS) prices.
Strategas ranks S&P 500 companies with share prices below $1,000 by CDS spreads. Generally, the lowest 50 names are selected each quarter and equally weighted (less 2% frictional cash).