Style tilts, sometimes referred to as portfolio tilts, represent a portfolio’s exposure to various factors that may allow investors to achieve a higher expected return. Historically, various factors have engendered cyclicality across market and economic regimes. For example, a shift in interest-rate expectations may cause one factor to outperform another. The strategy attempts to capture these regime shifts over time by adjusting the style tilt quarterly. The Granny Shots strategy utilizes a proprietary mix of style factors, including both cyclicality and quality factors. For a given style tilt, the underlying stock selection utilizes the Granny Quantitative Model (GQM).

Historically, certain industry groups or stocks may exhibit recurring patterns of performance during specific periods. By reviewing various arrays of returns over long time periods, the Granny Shots strategy seeks to determine which industries may exhibit superior relative performance over the ensuing 6-month period. The strategy evaluates its seasonal exposure to industry groups quarterly via the use of proprietary models that analyze historical win ratios. For the industry groups identified, the underlying stock selection utilizes the Granny Quantitative Model (GQM).

The Purchasing Managers’ Index (PMI) is a monthly economic indicator based on survey responses by private-sector companies in the manufacturing and services sectors. The index typically includes factors such as new orders, production, employment, supplier deliveries, and inventories. The PMI is measured on a scale of 0–100, where a reading above 50 indicates expected expansion. The Granny Shots strategy identifies a relationship between yield-curve dynamics and PMI that implies the latter has bottomed out, and seeks to gain exposure to companies benefitting from the forecasted PMI recovery.

As the millennial cohort has transitioned into its prime earning and spending years, its influence on the U.S. and global economy has accelerated. Their preferences are reshaping demand across housing, technology, finance, and consumer sectors. The Granny Shots strategy seeks to identify companies positioned to benefit from the spending power and growing influence of this demographic group, evaluating these names for inclusion based on their alignment with this long-term structural trend and their contribution to the broader macro framework.

As aging populations and persistently low birth rates create a long-term global labor shortage, companies are accelerating investment in AI, robotics, and automation to maintain productivity and support margin expansion. The Granny Shots strategy identifies companies positioned to benefit from this shift, particularly those providing durable, scalable AI and automation solutions tied to long-term productivity trends.

As accelerated AI adoption drives unprecedented power demand and increases the need to secure the digital infrastructure supporting it, reliable energy systems and robust cybersecurity have become core enablers of the modern economy. The Granny Shots strategy identifies companies positioned to benefit from these dynamics, including those strengthening energy generation and delivery, and those providing essential cybersecurity capabilities for AI-driven systems.

As macro trends give the Federal Reserve room to adopt a more accommodative stance, lower rates and improved liquidity create a more supportive backdrop for risk-taking and business investment. The Granny Shots strategy identifies companies positioned to benefit from this shift, particularly those with meaningful sensitivity to falling interest rates, expanding credit availability, and strengthening consumer or corporate demand.