The AGAD Framework

A behavioral classification system for portfolio construction. Four pillars that reveal how positions actually perform across market regimes—the missing layer between asset class labels and total portfolio view.

Four Quadrants, One Portfolio

AGAD organizes investments by their economic behavior across different market conditions, not by their legal structure or asset class label.

Four behavioral quadrants forming a coherent portfolio structure

Composite behavior across market regimes

Behavioral Classification Across Institutional Contexts

Each pillar manifests differently across institutional mandates—but the behavioral characteristics remain consistent.

The Problem with Traditional Portfolio Construction

Asset class labels and factor models fail to provide actionable insight during market stress. Three fundamental issues persist:

Can't Visualize Regime Behavior

Asset class labels don't reveal how positions behave during growth vs. crisis vs. transition periods.

Hidden Concentration Risk

Traditional allocations mask correlation breakdowns that emerge during stress—exactly when diversification matters most.

No Actionable Framework

Statistical factor models are academically rigorous but operationally useless during market dislocations.

Four Behavioral Pillars

AGAD classifies positions by economic behavior, not legal structure. Each pillar serves a distinct role across market regimes.

Attack

25% Baseline

Primary Role

Capital appreciation through positive correlation to risk-on markets and long convexity

Capture explosive growth and asymmetric returns during bull markets and economic expansions. Accepts higher volatility for potential outsized gains (asymmetric upside with limited downside in quiet periods).

Guard

25% Baseline

Primary Role

Income generation and stability through positive correlation but short convexity

Collect reliable income while providing ballast during moderate drawdowns. Prioritizes quality and low volatility over aggressive growth (steady carry with capped upside).

Adapt

25% Baseline

Primary Role

Diversification through zero/low correlation and variable convexity

Dampen portfolio volatility through orthogonal returns, exploiting tactical dislocations without directional market bets. Provides regime-aware flexibility.

Defend

25% Baseline

Primary Role

Asymmetric crisis protection through negative correlation and long convexity

Provide "crisis alpha" during tail events, compressing drawdowns and enabling opportunistic re-entry. Structural protection, not tactical hedging.

Analyze Your Portfolio

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