US Large Cap Sentiment Portfolio

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26.6% Average Annual Return

Investment Goal

The investment strategy and goal is to deliver higher returns than the S&P 500 at a lower volatility on a consistent basis.

Model Description

The equity universe is selected based on extensive fundamentals research done by Kailasa Capital LLC over the years and primarily focused on US Large cap high quality growth and value stocks. Currently there are 100 equities and the sector distribution is as shown in the chart below:

The trading strategy is Equal weight and the top 30 stocks in this universe are picked using a bi-factor model that blends Daily Sentiment and Sentiment Momentum (Change in sentiment over the 50-day moving average). The rebalancing is weekly and the portfolio ensures that sector / industry overweighting does not occur. The portfolio also uses a hedging strategy to guard against major drawdown in the stock market.

Model Performance

The US Large Cap Sentiment Portfolio significantly outperformed the S&P 500 performance for the back- test period July 11, 2017 – May 18, 2021 by applying the sentiment signals to rebalance the 30 stock portfolio. The cumulative portfolio return for the period was 154.47 % vs the S & P 500 cumulative return of 74.10 %. The volatility of the portfolio was lower than the S&P 500 with a beta of 0.81 and a Sharpe Ratio of 1.31.

Disclosures

Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance. It is important to remember that there are risks inherent in any investment and that there is no assurance that any money manager, fund, asset class, style, index or strategy will provide positive performance over time. Diversification and strategic asset allocation do not guarantee a profit nor protect against a loss in declining markets. All investments are subject to risk, including the loss of principal. The information contained herein is based upon the data available as of the date of this document and is subject to change at any time without notice.