Large Cap Growth

The Large Cap Growth strategy focuses on stocks with a market cap greater than $10 billion. This system also allocates a portion of the portfolio to short hedge trades, when appropriate, to reduce downside exposure. This system uses a proprietary 4 level scanner comprising technical, fundamental and factor-based quantitative analysis.  The bullish trades are typically open for 90 to 270 days.  Four percent of capital is allocated to each trade.

Summary of Benefits

  • Diversified across approximately 23 stocks to reduce single stock and single sector risk
  • Follows well defined exit rules to close positions as dictated by the technicals, which increases the probability of preserving gains and capital during periods of high volatility

When appropriate, the strategy allocates 15% to 25% of the portfolio to options-based hedge trades

  • Reduces volatility of the portfolio
  • Offers protection during market corrections or black swan market crash events

Sophisticated analysis comprising technical, fundamental and factor-based quantitative analysis

  • Identify stocks that have moved into high probability technical setups, including:
    • Accumulation and distribution
    • Relative strength
  • Identify stocks with strong fundamentals, including:
    • Sales growth
    • Earnings growth
    • Pre-tax profit
    • Return on equity
  • Factor-based quantitative screen to identify stocks with the following:
    • Have high probability of making an upward move
    • Have high probability that the magnitude of the move will be significant