Total Return

STRATEGY

The stock selection process is based on analysis of profitable companies utilizing strict equity price to free cash flow guidelines. Relationships of free cash flow to the multiple of free cash flow are measured to determine whether the stock makes it into the portfolio. Stocks are selected based on historic low price to free cash flow relationships.

In structuring the portfolio, risk (beta) is reduced in various ways. Specifically, equities are purchased in pairs of low correlating asset classes as measured by historical price to free cash flow returns and its impact on the equity price.

Further, the buying focus is on equities in bullish sectors of U.S. markets. This discipline forces the purchase of equities that benefit from larger market and economic trends.

As equities are identified, further technical and weighting indicators are then applied. This enhances the fundamental analysis by adding a critical timing element to the buy/sell equation.

FACTS AT A GLANCE
Performance

As of Date:1/31/2017

  Total Return DJ Moderate
YTD 0.72 1.03
1 Year 8.43 9.74
2 Years -2.9 3.82
3 Years -0.24 5.41
5 Years 4.18 6.97
10 Years - 5.92
15 Years - 6.25
Since Inception 8.74 9.57
Risk Metrics

 

Total Return

DJ Moderate

Excess Return

-1.8

0

Beta

1.2

1

Alpha

-3

0

Standard Deviation

10.3

6.13

Sharpe Ratio

0.69

1.37

R-Squared

50.8

100

Up Capture Ratio

105.78

100

Down Capture Ratio

148.34

100

Top-10 Holdings

 

Portfolio Weighting %

Total Ret YTD (daily)

Health Care Select Sector SPDR® ETF

15

-11.2

PowerShares QQQ ETF

15

-13.94

Consumer Discret Sel Sect SPDR® ETF

13

-12.22

iShares iBoxx $ Invst Grade Crp Bond

10

0.06

iShares Nasdaq Biotechnology

10

-26.69

iShares US Preferred Stock

10

-4.74

SPDR® S&P Regional Banking ETF

10

-17.72

National Oilwell Varco Inc

6

-17.71

SPDR® S&P Insurance ETF

6

-9.07

Financial Select Sector SPDR® ETF

5

-14.53

Risk of Loss: The value of securities and other investments may move up or down, sometimes rapidly and unpredictably. Securities markets can be volatile. A client account may at any point in time be worth less than its initial value. Regardless of how well an individual investment performs, if financial markets decline, you could lose money. Investment in specific securities involves risks of loss due to a variety of reasons.