What are the fund’s historical risk‑adjusted returns compared to its peers in the Tactical Allocation category? | CRDBX (Aug 14, 2025) | Candlesense
CRDBX

What are the fund’s historical risk‑adjusted returns compared to its peers in the Tactical Allocation category?

The Potomac Defensive Bull Fund (CRDBX) has posted historical risk‑adjusted returns that place it in the top‑10 % of the Morningstar Tactical Allocation universe. Morningstar’s 5‑star rating is awarded only to funds whose risk‑adjusted performance (typically measured by the Sharpe ratio) outperforms at least 90 % of their category peers over the rating period. In other words, CRDBX’s return‑to‑volatility profile has consistently eclipsed the majority of the 229 tactical‑allocation funds, delivering superior upside while keeping downside risk in check.

From a trading perspective, this strong risk‑adjusted track record signals that CRDX’s tactical positioning—its blend of defensive equity, credit‑risk hedges, and opportunistic long/short bets—has been effective across varied market cycles. The fund’s 5‑star rating suggests it can generate attractive returns even when broader markets are volatile, making it a compelling candidate for portfolio allocation or a long‑position for investors seeking a balanced, defensive tilt. Given its proven ability to manage risk while capturing upside, traders might consider adding CRDX on pull‑backs or increasing exposure as a core defensive component, especially ahead of periods of heightened macro uncertainty (e.g., tightening monetary policy or earnings‑season volatility).

Other Questions About This News

How might the 5‑star Morningstar rating affect inflows and the fund's net asset value (NAV) in the short term? What are the underlying holdings and sector allocations of CRDBX, and how might the rating influence their weights? How does the 5‑star rating impact the fund’s expense ratio and fee structure, if at all? What is the expected impact on the fund’s liquidity and bid‑ask spreads following the rating announcement? Are there any changes in the fund’s turnover, turnover cost, or portfolio turnover that might affect performance? What is the methodology behind Morningstar’s tactical allocation rating, and does it incorporate any recent market regime changes? Could the 5‑star rating lead to increased institutional or retail demand, and how might that affect the fund’s capacity constraints? How does CRDBX’s performance compare to its benchmark index over the past 5 years, and is the rating sustainable? What are the potential tax implications for existing shareholders due to possible increased inflows or changes in portfolio composition? How does the fund’s risk profile (e.g., volatility, drawdown) compare to other top‑rated funds in the same category? Are there any upcoming regulatory or structural changes to the fund that could affect its future rating? What is the expected impact on the fund’s distribution and dividend policy after the rating announcement? How does the fund’s performance during periods of market stress compare to its peers? Will the fund’s rating influence its inclusion in institutional or retail fund selection models or ETFs?