Risk Off Positions Improve Drawdown Experience
- Tim Morton, CFA
- Feb 27
- 1 min read
It has been a choppy week for the major equity indexes. LEAF is off 1% from its all time strategy high, while the NASDAQ is down 5%.
As reflected on the chart below, LEAF drawdowns have been 1% to 2%. The NASDAQ suffering drawdowns of 3% to 8% over the same time period (August 2025 to February 2026)
Drawdown chart. LEAF in orange vs QQQ
LEAF's risk-off holdings are assisting in the reduction of the strategy's volatility
regards, Tim
Tim Morton, CFA is a retired portfolio manager with 45 years of experience working with private clients. For the past two years, the editor of mortonir.com and a contributor to Barron's. My comments are not to be taken as investment recommendations. They are purely for discussion purposes. Please see your advisor for investment advice.
