The following charts say it all. It's a “passive 30-Stock Strategy that designed to outperform the SPY by achieving long-term capital gains with lower turnover and strategically harvesting short-term capital losses to maximize tax efficiencies.”
The drawdown of the S&P 500 was over 50% from 2007-2009. The normal drawdown of the 30-stock strategy is 30%. The drawdown of the 30-stock strategy with the tactical overlay is only 13.91%.

The CAGR over the illustrated time frame (01-01-2003 to 01-01-2011) was 6.82% for the SPYand 32.81% for the 30-stock strategy w/overlay).
The numbers from the above charts come from the OnPointe Risk Analyzer program.
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30-Stock Strategy with Tactical Overlay