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 portfolio has outperformed the S&P 500 since inception and rebalances on a quarterly basis by applying StockSnips MSDX Sentiment Signal, and fundamental factors such as growth, value, quality. It selects the top 60 stocks and has protective sells as needed, if a company’s factor values degrade. The 1 year average annual return is -11.41% vs. the S&P 500 -18.32% for the same period.