HAA (Hybrid Asset Allocation)
HAA (Hybrid Asset Allocation) is a tactical asset allocation strategy reviewed on a monthly cadence. Its hypothetical backtest runs through 2026-08-17. BestFolio supplies the public rule or approach and backtest context; current signals, allocations, and paid interactive data remain restricted to Pro access. The recorded 2023-02-03 publication or construction boundary separates pre-publication simulation from later market observations under fixed rules; all returns remain hypothetical. Users review each scheduled signal and place any resulting trades in their own brokerage. BestFolio does not execute trades or provide personalized investment advice.
- Cadence
- Monthly
- Backtest data through
- 2026-08-17
- History boundary
- The recorded 2023-02-03 publication or construction boundary separates pre-publication simulation from later market observations under fixed rules; all returns remain hypothetical.
- Rule / approach
- 1. Check canary trigger: Is TIP 13612 equal-weighted momentum positive? 2. If YES → Select top 4 from offensive universe by 13612 equal-weighted score, equal weight 25% each 3. If NO → Allocate to best of defensive candidates (IEF or BIL)…
- BestFolio supplies
- the public rule or approach and backtest context; current signals, allocations, and paid interactive data remain restricted to Pro access
- Customer action
- Review each scheduled signal and place any required trades in your own brokerage; BestFolio does not execute orders.
- Costs and exclusions
- net of a modeled one-way transaction cost (10 bps, scaled up to 3x under stress); taxes, fund-expense drift, or market impact are not modeled
- Freshness
- The latest available backtest ends 2026-08-17. A run timestamp is not exposed here, so no stronger freshness claim is made.
- Next expected action
- First trading day of September; scheduled 2026-09-01 at 09:30 ET. Review the published signal before placing any trade.
HAA (Hybrid Asset Allocation) at a glance
HAA (Hybrid Asset Allocation) is a tactical asset allocation (TAA) strategy by Wouter Keller across US Equity, International Equity, Emerging Markets, REITs, rebalanced monthly. Backtested 1974-02-28 to 2026-08-17 (52.3 years): 16.2% CAGR, 1.49 Sharpe, -19.7% max drawdown, 10.0% volatility.
- Type
- Tactical (TAA)
- Author
- Wouter Keller
- Rebalancing
- Monthly
- Risk
- Moderate
- Period
- 1974-02-28 to 2026-08-17
- CAGR
- 16.2%
- Sharpe
- 1.49
- Max Drawdown
- -19.7%
- Volatility
- 10.0%
HAA (Hybrid Asset Allocation) — Tactical Asset Allocation Strategy
Hybrid Asset Allocation (HAA) is a momentum-based tactical strategy developed by Wouter Keller, published in 2022. It uses a 'canary' universe of protective assets (TIP, BIL, IEF) to gauge market risk. When the canary trigger (TIP) shows negative momentum, the portfolio shifts to defensive bonds. Otherwise, the top 4 assets from a 9-asset offensive universe are selected based on 13612 equal-weighted momentum scoring.
Note: HAA differs from VAA/DAA/BAA by using equal-weighted 13612 (1m + 3m + 6m + 12m returns, all equal weights), NOT the weighted 13612W (which uses weights 12,4,2,1) those strategies use. This gives more equal influence to longer-horizon momentum signals.
HAA (Hybrid Asset Allocation): frequently asked questions
- What is Hybrid Asset Allocation?
- Hybrid Asset Allocation (HAA) is Wouter Keller's tactical strategy: a single TIP canary gates risk-on or risk-off, and when risk-on it holds the top 4 assets by 13612 momentum (the 1, 3, 6, and 12-month returns, equally weighted) from a broad multi-asset universe, rotating to the best of bonds or cash when the canary turns negative. Monthly rebalancing.
- Who created the HAA (Hybrid Asset Allocation) strategy?
- HAA (Hybrid Asset Allocation) was developed by Wouter Keller. It is based on Keller, W.J. (2022). Hybrid Asset Allocation (HAA).
- What is the historical return and maximum drawdown of HAA (Hybrid Asset Allocation)?
- Backtested from 1974-02-28 to 2026-08-17, HAA (Hybrid Asset Allocation) returned 16.2% CAGR with a -19.7% maximum drawdown and a Sharpe ratio of 1.49. Past performance does not guarantee future results.
- How often is HAA (Hybrid Asset Allocation) rebalanced?
- HAA (Hybrid Asset Allocation) is rebalanced monthly. BestFolio publishes the updated allocation signal each period.
- Is HAA (Hybrid Asset Allocation) a tactical asset allocation strategy?
- Yes. HAA (Hybrid Asset Allocation) is a tactical asset allocation (TAA) strategy: it adjusts its holdings based on market signals each period rather than holding a fixed allocation.
Backtest Performance (1974-02-28 to 2026-08-17)
| Metric | HAA (Hybrid Asset Allocation) |
|---|---|
| CAGR | 16.2% |
| Max Drawdown | -19.7% |
| Sharpe | 1.49 |
| Sortino | 2.46 |
| Volatility | 10.0% |
| Calmar | 0.82 |
| Total Return | 259125.4% |
| Backtest Period | 52.3 years |
Strategy Details
- Type
- Tactical (TAA)
- Rebalancing
- monthly
- Risk Level
- moderate
- Variants
- 15
- Author
- Wouter Keller
- Source
- Keller, W.J. (2022). Hybrid Asset Allocation (HAA)
Asset Classes
- US Equity
- International Equity
- Emerging Markets
- REITs
- Commodities
- Bonds
Categories
Further reading
New to this approach? Read what tactical asset allocation is and how it works.
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Related strategies
- DAA (Defensive Asset Allocation) by Wouter J. Keller & Jan Willem KeuningSharpe 1.32
- Multi-Asset Momentum by Zambrano & Rizzolo (Vitral Advisors)Sharpe 1.31
- PAA (Protective Asset Allocation) by Wouter J. Keller & Jan Willem KeuningSharpe 1.29
- GPMv (DMS) by Randy Harris (DMS variant of Keller & Keuning's GPM)Sharpe 1.26
Related research
- Month-End Signal, Next-Day Trade: How Much Delay Can TAA Survive?We added 1 and 2 business sessions to GEM, HAA and BAA after their canonical next-session trade. HAA and BAA each lost about 1 CAGR point at the 2-session delay.
- Can Stock-Bond Correlation Warn You Before Treasuries Fail?Treasuries failed in 2 of 5 fast equity selloffs. We tested whether the prior 60-day stock-bond correlation warned us. The rule caught 2 cases out of 5 and fired constantly in calm markets.
- Is that Sharpe real? Inside the Robustness scoreEvery strategy on BestFolio carries a Robustness score: the probability its Sharpe is a real edge rather than the luckiest pick among the 202 variants we tested, released or not. Here's how it works, which of our own strategies it flags, and why every score just dropped a notch.