Objective

The investment objective of this portfolio is to provide long-term capital appreciation.

Strategy Description

The portfolio seeks to select US Large and Mid-Cap equities that are accompanied by accelerating growth, rising earnings expectations, constructive valuations and favorable StockSnips Sentiment signal. The portfolio is actively managed with the goal of selecting the best investment opportunities while limiting volatility.

Key Features

Our quantitative modeling identifies stocks that are likely to outperform based on fundamental variables such as growth, earnings expectations and valuations. Specifically, four stock selection pillars comprise the various models – Growth, Value, Quality and News Sentiment. These weights are adjusted based on KPIs that are monitored to mitigate risks when market regimes change.

  • The portfolio uses quantitative modeling leveraging the alpha generating ability of AI Sentiment.
  • Advanced Natural Language and Machine Learning algorithms transform unstructured textual data to quantified real-time sentiment signal using news articles from established sources and asserts the sentiment of each financially “oriented” sentence within an article.
  • These snippet level assertions are aggregated at the ticker level and is a measure of investor sentiment.
  • Removal or reduction of a position in the portfolio is considered when any of the selection criteria deteriorates.

Model Performance

The model portfolio returns since inception on a risk adjusted basis, were 0.40% higher than the S&P 500 return for the full period shown at a lower Beta of 0.97. The portfolio rebalancing is quarterly with protective sells as needed, if a company’s factor values degrade.