On average, this strategy invests in up to fifteen (15) large capitalization value, high-dividend, and other quality companies in the S&P 500 with strong and stable growth potential selected based on quantitative fundamental analysis. The selection methodology seeks to avoid companies that could potentially be value traps showing early signs of price stagnation or that may be at fair valuation levels and not expected to attract institutional interest to move it higher. The selected stocks must present a comparatively attractive risk/reward ratio offering compelling price appreciation potential.
The methodology also includes limited exposure to companies with strong dividend yield seeking to maximize total returns by dynamically selecting high yield stocks that are also expected to appreciate. Dividend yield selection weighting within the portfolio will vary based on market conditions and relative sector strength between Value and Dividend stocks.
Related ETFs may also be used for long positions in lieu of individual stock positions at times. The strategy uses a timed hedge seeking to protect against extended bearish periods. Based on technical and quantitative fundamental factors, the strategy will seek to hedge up to 100% of the core positions or partially move to cash. Trades may occur as often as weekly but on average are held longer.