The Leuthold Sector Rotation strategy aims to take advantage of the disparity in sectors during normal business cycles. We believe that long-term outperformance will be attained by the means of concentrating investments among the underlying equities within the dominant sectors and/or those sectors that appear poised for market leadership.
Morningstar Rating™ Overall among 742 Large Blend portfolios as of 12.31.25 based on risk-adjusted returns.†
| Period | SR | ESR | Bench |
|---|---|---|---|
| Sep | 4.17 | 4.21 | 3.65 |
| Q3 | 7.32 | 8.52 | 8.12 |
| 2024 | 16.56 | 16.32 | 25.02 |
| YTD | 12.52 | 17.10 | 14.83 |
| 1-YR | 13.97 | 16.46 | 17.60 |
| 3-YR | 20.23 | 23.14 | 24.94 |
| 5-YR | 14.91 | 16.26 | 16.47 |
| 05/31/16 | 15.07 | 15.16 | 15.20 |
| Statistic | SR | ESR | Bench |
|---|---|---|---|
| Alpha | -0.30 | -0.22 | - |
| Beta | 1.03 | 1.12 | - |
| Tracking Error | 6.02 | 6.58 | - |
| R-squared | 0.94 | 0.92 | - |
| Std Dev | 13.58 | 14.98 | 13.37 |
| Sharp Ratio | 1.07 | 1.16 | 1.42 |
| Max Draw | -8.62 | -10.19 | -8.25 |
We believe that equity-sector leadership inherently rotates throughout the course of a normal business cycle and long-term outperformance will be attained by concentrating investments among sectors that are exhibiting leadership characteristics, while avoiding those that appear poised to underperform. It is our conviction that our discipline, which combines both value and growth mechanisms based on our nearly 40 years of independent research, will drive superior results over time
The Leuthold Group was founded in 1981 as an independent investment research firm. In 1987, the firm registered an RIA subsidiary with the Securities and Exchange Com- mission and began to direct investment portfolios based on the financial analysis of their research. Historical performance reflected is for the Leuthold Sector Rotation Strategy, Leuthold Enhanced Sector Rotation Strategy, and Leuthold Factor Tilt Strategy. These are equity styles that are flexible and utilize quantitative analysis in order to seek capital appreciation; they will remain fully invested at all times. The current month’s performance is an estimate.
Returns presented for the Strategies assume reinvestment of all dividends, interest, and realized gains. Gross Returns are presented before deduction of management and custodial fees, but after trading expenses. Past performance should not be considered predictive of future performance. As with any investment, there can be no assurance that the Adviser’s investment objective will be achieved or that an investor will not lose a portion or all of his investment. The Sector Rotation and Enhanced Sector Rotation Strategy composites were established on May 10, 2016. The Factor Tilt Strategy composite was established on December 28, 2017.
† Morningstar Rating™ or “star rating”: For funds with at least a 3-year history, a risk-adjusted return measure is calculated to account for variation in monthly performance, placing more emphasis on downward variations and rewarding consistency. The top 10% of funds in each category receive 5 stars, next 22.5%=4 stars, next 35%=3 stars, next 22.5%=2 stars, and bottom 10%=1 star. The “Overall” Rating is derived from a weighted average of the 3-, 5-, and 10-year ratings. Within the Large Blend category, for the 3-, 5-, and 10-year periods, respectively, Leuthold Sector Rotation ETF Portfolio is rated 3, 4, and NA stars, among 742, 671, and NA portfolios. ©2025 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers is responsible for any damages or losses arising from any use of this information. Leuthold Funds’ adviser pays a license fee for the use of Morningstar Ratings™.
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