Our Portfolios


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Unique and Cutting Edge

Our approach to investing is very unique and cutting edge. We develop and use complex, sophisticated quantitative models to determine our investment strategies and determine which styles, sectors, and markets to invest in. Our portfolio allocations are based around short-term, intermediate, and long-term models. We never base our investment decisions on popular trends, emotions or feelings. All decisions are purely based on our quantitative models which we have developed.

Paragon manages three primary portfolios. Most of our clients use a combination of these portfolios to build a customized portfolio that matches their investment comfort level and goals.

Managed Income and Top Flight primarily invest in exchange traded funds (ETFs) .Our experience shows that investing in ETFs provides the portfolio with the lowest costs, highest tax efficiency and best flexibility.

Managed Income, a Conservative Portfolio

This portfolio’s objective is to generate higher returns than bank certificates of deposit or traditional bond portfolios without the level of volatility of the stock market. It is managed using some of the same techniques that Top Flight, Paragon’s growth portfolio originally pioneered, but with a much more conservative approach.

The principal asset classes Managed Income rotates between include

  • Treasury, High-yield and Emerging Market Bonds
  • Real Estate Investment Trusts (International and Domestic)
  • Utility Stocks
  • Bank Loan, Convertible, Preferred and Dividend Income Stocks
  • Alternative Strategy Options
  • Low Volatility Funds
  • Money Market Instruments

The primary objective of this portfolio is to Preserve Capital. The secondary objective is to generate returns superior to bank CDs and traditional bond portfolios.

Neither objective is guaranteed, and in the past there have been times when the portfolio has declined. Historically, this portfolio has experienced significantly less volatility than Top Flight, Paragon’s growth portfolio. For an overview of the portfolio’s long term performance, please review the long term Managed Income Track Record.

Top Flight, a Growth Portfolio

Designed as a total solution for the growth-oriented investor, Top Flight was created to provide exposure to the best performing styles and sectors within the global stock markets. Top Flight is actively managed, and it primarily moves between a mix of ETFs that meet the requirements of our quantitative trend following and seasonality models. In addition, to reduce volatility, another group of quantitative models determine how much market exposure the Top Flight Portfolio will have at any point in time.

The proactive set of Paragon models is designed to identify trends and measure velocity within the universe of available market styles, sectors and industries. When trends are identified, the portfolio stays invested in those positions until certain exit criteria are met. When an exit criterion is met, the funds are rotated into other areas that currently meet the model’s recommendations. This rotation is ongoing, and the models are constantly adapting to current market conditions.

The protective set of models is designed to reduce risk. These models determine how much of the portfolio will be invested in the market. This percentage is based on how much risk the model measures at that point in time. When the model shows that there are high levels of risk in the markets, the portfolio holds more cash. When the model shows that there are low levels of risk in the markets, the portfolio becomes fully invested. The equity exposure in the portfolio changes depending on market conditions and will range anywhere in between 0% and 100% net long.

The primary objective of this portfolio is to generate superior risk-adjusted returns. The secondary objective is to protect against downside volatility.

While we can’t guarantee that Top Flight will always meet these objectives, Paragon actively manages this growth portfolio with these goals in mind. Historically, this portfolio has experienced greater volatility than our conservative Managed Income Portfolio and has generated higher returns. For an overview of the portfolio’s long term performance, please review the long term Top Flight Track Record.

Paragon Private Strategies Fund

Paragon Private Strategies Fund, L.P. is a highly diversified private markets investment vehicle. This fund and the advertising of it are limited to accredited Investors. For investors who meet the qualification requirements we may recommend that an investment in this fund be included in your custom portfolio mix. If you would like additional information please contact us directly.