Our strategy focuses on a unique blend of trading equities of smaller companies and small/mid-cap ETF growth index funds — capitalizing on the explosive moves of a small select number of smaller growth companies and providing diversification through small and mid-cap growth index ETFs during favorable seasons of the year. It takes a top-down approach, based on the overall stock markets, for deciding when to go long/short and take profits/raise cash for both equities and ETFs. Its foundation is built upon the advanced business intelligence, process management, and risk management strategy that has been refined over the past 25 years.
The essence of this strategy is to cherry pick those few promising smaller companies before they make their advances, along with diversifying through small and mid-cap growth index ETFs. Selling/profit taking will occur based on technical analysis of the markets and equities. Similar to picking cherries during the season they are ripe for picking; this strategy strives to keep most of its equity/ETF picking restricted to the season(s) of the year most attractive for smaller growth companies. It also aims to protect capital by raising cash at the start of market downturns, using Short/Bear ETFs when appropriate and staying in cash, earning an attractive market interest rate of return, during those unfavorable seasons.
Process management is often mentioned as an afterthought in most financial products, buried in the back of their marketing brochures. But with this strategy, there is an obsession with constantly reviewing and improving the process. The central focus in the future is this process management focus and not on rapidly growing the asset size under management.
Business Intelligence
- Proprietary system using advanced analytics in finding small/mid size equities
- Maximizes performance gains using advanced analytics when buying and selling equites/ETFs
- Extensive use of fundamental and technical analysis
Process Management
- Continuous reviews of past trades
- Continuous comparison of current trading environment to past market behavior
- Diversification through small and mid-cap growth index ETFs
- Continuous improvements in the execution of the strategy
Risk Management
- Trading equities and ETFs during favorable seasons of the year
- Selling/Profit taking based on technical analysis of the markets and equities
- Short/Bear ETFs limited usage to early stages of market corrections
- Minimizing losses in any equity or ETF – 10% loss limit goal
- Average daily volume for any equity or ETF above 100,000 shares
- Trading on US stock exchanges (NYSE, Nasdaq and AMEX)
- Contingency plan in place for death/disability of Portfolio Manager