How does the fund’s performance during periods of market stress compare to its peers?

During market‑stress episodes the Potomac Defensive Bull Fund (CRDBX) has out‑performed the vast majority of its tactical‑allocation peers. The 5‑Star Morningstar rating—earned by ranking in the top 10 % of the 229 funds in the category—reflects superior risk‑adjusted returns, meaning CRDBX not only delivered positive absolute returns but did so with lower volatility and smaller drawdowns than comparable funds. Historical back‑testing shows that in the 2022‑23 equity correction and the COVID‑19 sell‑off of early‑2020, CRDBX’s maximum drawdown was roughly half that of the category median, while its Sharpe ratio remained in the 0.9‑1.1 range versus the median of 0.5‑0.7. This defensive tilt stems from its tactical asset‑allocation framework, which leans toward low‑beta equities, high‑quality credit, and modest cash positions when macro signals turn adverse.

For traders, the fund’s track record makes it a viable defensive overlay in a diversified portfolio, especially when forward‑looking indicators (e.g., rising VIX, inverted yield curve, or weakening macro data) suggest heightened risk. An entry strategy could involve buying on short‑term pull‑backs (e.g., when CRDBX falls 3‑5 % on a market dip) while maintaining a core allocation, as the fund’s defensive positioning tends to preserve capital and capture upside when markets rebound. Conversely, investors should monitor the fund’s tactical shift signals—if the model moves aggressively back into risk assets, the defensive edge may narrow, prompting a re‑balancing toward higher‑growth alternatives.