A. Description of the Firm: Strategic International provides automated, discretionary portfolio management services to individual and institutional investors through its interactive website. A small number of investors receive traditional, face-to-face advisory services.
1. Length of Time the Firm Has Been in Business: Strategic International has been in business since 2017.03.22.
2. Principal Owners: Strategic International is wholly owned by Mr. Taylor Lovell Shockey. As such, the Firm is not owned by a parent company nor any publicly-held intermediate subsidiaries.
B. Description of Advisory Services Offered: 1. Specialization in Particular Types of Advisory Services: Strategic International specializes in quantitative analysis. It uses quantitative analysis to construct and maintain efficient portfolios in accordance with the basic tenets of Modern Portfolio Theory. Tolerance for risk is initially quantified using methods derived from Prospect Theory and Behavioral Economics. The following paragraphs from Investopedia.com describe quantitative analysis, Modern Portfolio Theory, Prospect Theory and behavioral economics in greater detail: a. Description of Quantitative Analysis: In general terms, quantitative analysis can best be understood as simply a way of measuring or evaluating things through the examination of mathematical values of variables. The primary advantage of quantitative analysis is that it involves studying precise, definitive values that can easily be compared with each other, such as a company's year-over-year revenues or earnings. In the financial world, analysts who rely strictly on quantitative analysis are frequently referred to as "quants" or "quant jockeys." Governments rely on quantitative analysis to make monetary and other economic policy decisions. Governments and central banks commonly track and evaluate statistical data such as GDP and employment figures.
Common uses of quantitative analysis in investing include the calculation and evaluation of key financial ratios such as the price-earnings ratio (P/E) or earnings per share (EPS). Quantitative Strategic International ~ Form ADV Part 2A: Brochure ~ 2024.03.295 analysis ranges from examination of simple statistical data such as revenue, to complex calculations such as discounted cash flow or option pricing. (http://www.investopedia.com/terms/q/quantitativeanalysis.asp) b. Description of Modern Portfolio Theory: Modern Portfolio Theory (MPT), a hypothesis put forth by Harry Markowitz in his paper "Portfolio Selection," (published in 1952 by the Journal of Finance) is an investment theory based on the idea that risk-averse investors can construct portfolios to optimize or maximize expected return based on a given level of market risk, emphasizing that risk is an inherent part of higher reward. It is one of the most important and influential economic theories dealing with finance and investment.
Also called "portfolio theory" or "portfolio management theory," MPT suggests that it is possible to construct an "efficient frontier" of optimal portfolios, offering the maximum possible expected return for a given level of risk. It suggests that it is not enough to look at the expected risk and return of one particular stock. By investing in more than one stock, an investor can reap the benefits of diversification, particularly a reduction in the riskiness of the portfolio. MPT quantifies the benefits of diversification, also known as not putting all of your eggs in one basket.
(http://www.investopedia.com/walkthrough/fund-guide/introduction/1/moder n-portfolio-theory-mpt.aspx) c.

Description of Prospect Theory: Prospect theory assumes that losses and gains are valued differently, and thus individuals make decisions based on perceived gains instead of perceived losses. Also known as "loss-aversion" theory, the general concept is that if two choices are put before an individual, both equal, with one presented in terms of potential gains and the other in terms of possible losses, the former option will be chosen.
For example, an investor is given a pitch for the same mutual fund by two separate financial advisors. One advisor presents the fund to the investor, highlighting that it has an average return of 12% over the past three years. The other advisor tells the investor that the fund has had above-average returns in the past 10 years, but in recent years it has been declining. Prospect theory assumes that though the investor was presented with the exact same mutual fund, he is likely to buy the fund from the first advisor, who expressed the fund’s rate of return as an overall gain instead of the advisor presenting the fund as having high returns and losses.
(http://www.investopedia.com/terms/p/prospecttheory.asp) d. Description of Behavioral Economics: Strategic International ~ Form ADV Part 2A: Brochure ~ 2024.03.296 Behavioral economics explores why people sometimes make irrational decisions, and why and how their behavior does not follow the predictions of economic models. Notable individuals in the study of behavioral economics are Nobel laureates Gary Becker (motives, consumer mistakes; 1992), Herbert Simon (bounded rationality; 1978), Daniel Kahneman (illusion of validity, anchoring bias; 2002) and George Akerlof (procrastination; 2001).
(http://www.investopedia.com/terms/b/behavioraleconomics.asp) 2. Financial Advice Limited to Particular Types of Investments: Strategic International does not limit its advice to particular types of investments in its face-to-face service. It does, however, currently limit itself to stocks in its online service.
C. Tailoring Advisory Services to the Individual Needs of Clients: The automated advisory service is tailored to the individual needs of clients in the sense that it is selecting and rebalancing securities in clients’ accounts based on the unique risk tolerance level of each client. That being said, however, as of the date of this brochure, important portfolio considerations like time horizon, liquidity needs and tax situation are not programmed into the automated service and are therefore not weighed when making automated portfolio management decisions.
Traditional, face-to-face clients receive these additional portfolio considerations.
1. Client Imposed Restrictions on Securities Selection: Clients using the online, automated advisory service are unable to impose restrictions on investing in certain securities or types of securities.
Traditional, face-to-face clients may impose such restrictions.
D. Wrap fee programs and portfolio management services: Strategic International does not engage in any wrap fee programs.
E. Managed Client Assets Amounts Disclosure - Discretionary and Non-Discretionary: 1. Date of Calculations: The following amounts were calculated as of 2024.03.29.
2. Method of Calculations: The method Strategic International uses for calculating client assets under management is the same it uses for calculating regulatory assets under management as required for Item 5.F in Form ADV Part 1A.
3. Discretionary Assets Under Management: $7,126,219.00 4. Non-Discretionary Assets Under Management: $0.00 Strategic International ~ Form ADV Part 2A: Brochure ~ 2024.03.297