Each quarter our team evaluates all investments held in our models to ensure we are considering market trends, economic outlook, investment quality and performance. After careful evaluation, we have made the following changes.
Core Model
- The core model is composed of mutual funds and ETF’s spanning equities, fixed income, and alternatives. This blended approach provides diversification between sectors and investment categories.
- This model has 5 allocations that differ based on risk tolerance (Conservative, Moderate Conservative, Moderate, Moderate Aggressive and Aggressive). While the positions themselves are the same in each of the 5 allocations, the difference comes from the weighting percentage of each investment.
- For example – The Conservative allocation has a much larger weighting in fixed income and alternatives. Whereas the Aggressive allocation has a much lower weighting in fixed income and alternatives, and a higher weighting in equities.
- In the equity sleeve we have updated our large cap growth fund.
- We have added a new multisector bond fund to the model. The bond model’s performance is in line with US Barclays Aggregate Bond Index while producing a higher yield.
- Our alternative sleeve focuses on strategies that are not correlated to traditional investments such as stocks and bonds. For this quarter we have added a new low correlation strategic fund and reduced our commodity exposure.
| Beta | Alpha | Standard Deviation |
|
| Blended Benchmark (S&P 500 and Aggregate Bond Index) | 1.00 | 0 | 9.24 |
| Feldmeyer Financial Core Model – Moderate Allocation |
0.97 | 3.23 | 9.19 |
*Metrics are using the Moderate Allocation.
Additions:
- Fidelity Momentum Factor ETF (FDMO)
- PIMCO Multisector Bond Active ETF (PYLD)
- LoCorr Strategic Allocation (LSAIX)
Sells:
- Federated Hermes MDT Large Cap Growth (FLCG)
- Eaton Vance Mortgage Opportunities (EVMO)
- iShares Silver ETF (SLV)
Bond Model
- The bond model has a current yield of 6.15%, and the model is selling at a discount of $96.72.
- We have made adjustments to increase our yield to over 6% while also increasing the credit quality of the bonds within the model.
- Our alpha remains positive, and our beta is lower than the Aggregate Bond index.
- For reference, alpha is a measure of the difference between a portfolio’s actual returns and its expected performance, given its level of risk as measured by beta. A positive alpha figure indicates the portfolio has performed better than its beta would predict. In contrast, a negative alpha indicates the portfolio has underperformed, given the expectations established by beta.
| Beta | Alpha | Standard Deviation |
|
| Aggregate Bond Index |
1.00 | 0 | 5.55 |
| Feldmeyer Financial Bond Model |
0.61 | 2.63 | 3.7 |
High Dividend Model
- We have made changes this quarter to keep our dividend yield at 10% and reduce the volatility within the model. The model now has a yield of 10.56%
- We have eliminated our exposure in the Business Development Company (BDC) space, given the volatility in this specific category so far this year. We expect this to continue throughout the year.
- We have increased our exposure in the preferred stock space and covered call space. These provide dividend income, as well as the potential for capital appreciation.
- These changes have increased our alpha and reduced our beta compared to the S&P 500 Index.
| Beta | Alpha | Standard Deviation |
|
| S&P 500 | 1.00 | 0 | 15.85 |
| Feldmeyer Financial High Dividend Model |
0.63 | 0.76 | 11.37 |
Additions:
- Virtus InfraCap US Preferred Stock (PFFA)
- JPMorgan Nasdaq Premium Income (JEPQ)
Sells:
- Sixth Street Specialty Lending (TSLX)
- Rithm Capital Corporation (RITM)
Stock Model
- The stock model has our top picks for 2026.
- The positions we have added give us exposure across different areas of the market, that we feel can perform well given the current economic and market conditions.
- This quarter we have added positions directly related to artificial intelligence, as well as industrial names that will build out the artificial intelligence landscape.
- We continue to monitor the markets closely and update when appropriate.
| Beta | Alpha | Standard Deviation |
|
| S&P 500 | 1.00 | 0 | 15.85 |
| Feldmeyer Financial Stock Model |
1.00 | 14.68 | 16.01 |
Additions:
- Lam Research Corporation (LRCX)
- Caterpillar Inc (CAT)
- Taiwan Semiconductor (TSM)
- Eaton Corporation (ETN)
Sells:
- Netflix (NFLX)
- Microsoft (MSFT)
- Goldman Sachs Gold ETF (AAAU)
- L3 Harris Technologies Inc (LHX)
Investment advisory services offered through OneSeven LLC, a registered investment advisor. One Seven and Feldmeyer Financial Group are independent of each other. For a complete description of investment risks, fees and services, review the On Seven firm brochure (ADV Part 2A) which is available from your Investment Advisor Representative or by contacting OneSeven.
This presentation does not take into account your particular investment objectives, financial situation or risk tolerance and may not be suitable for all investors. Investments and/or investment strategies involve risk including the possible loss of principal. The presentation is not intended to project the performance of any specific investment and is not a solicitation or recommendation of any investment strategy. There is no assurance that any investment strategy will achieve its objectives.
The S&P 500 index is designed to be a broad based unmanaged leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe or representative of the equity market in general. The Bloomberg US Aggregate Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market.