Seek to capture mispricing opportunities in large cap stocks due to market inefficiency, by continuously computing relative valuation of all large cap stocks.
Following daily updated equity curve and drawdown charts are produced from Focus Growth portfolio. Portfolio return and drawdown calculations are not audited and are provided by Analytic Investment Management LLC for informational purpose only. Portfolio return and drawdown data net of custodial and trading expenses are directly obtained from one separately managed brokerage account at Interactive Brokers and reflect the deduction of annual 2.0% management fee on daily basis.
Past performance is not indicative of any future result. Investing in this portfolio involves risk, including the risk of principal loss. Don’t invest with money you can’t afford to lose. Standard & Poor’s 500® Total Return (S&P 500®TR) is comprised of 500 stocks representing major U.S. industrial sectors. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”). Charts and S&P 500® Total Return data are provided by Sheets – Google Docs.
Seek to capture mispricing opportunities in large cap stocks due to market inefficiency, by continuously computing relative valuation of all large cap stocks according to growth factors such as earnings and sales growth, P/E/G ratios, operating margins, debt-to-equity, free cash flow and relative price strength. Positions are sold or reduced when stocks become more expensive relative to other stocks based on valuation factors, and are replaced with stocks of cheaper valuations. Typically hold around 30 to 50 large cap stocks with annual turnover rate above 500%.
TIME HORIZON AND INVESTMENT OBJECTIVE
Long term growth of capital.
Higher than US stock market.
Diversified stock positions.
ANNUAL MANAGEMENT FEE
2.0%, prorated on a daily or monthly basis.
I prefer to keep all my eggs in one basket and watch that basket closely.
Diversification is a protection against ignorance. It makes very little sense for those who know what they’re doing.
Price is what you pay. Value is what you get.
Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market.
Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.
Risk comes from not knowing what you’re doing.
Be fearful when others are greedy. Be greedy when others are fearful.
Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.
I’d be a bum on the street with a tin cup if the markets were always efficient.
The dumbest reason in the world to buy a stock is because it’s going up.
History tells us that leverage all too often produces zeroes, even when it is employed by very smart people.