Portfolio123: GARP Top Ranked
This strategy buys the top ranked GARP (Growth At a Reasonable Price) stocks. The top ranked stocks are picked based on a ranking system that combines several factors, such as: technical, valuation, earnings quality, and industry leadership.
Some of the key requirements for the holdings are:
- A PEG (Price to Earnings Growth) of less than 1.3
- Low price correlation between positions
- No more than 25% of assets in any one sector
This model holds 30 positions and has an annual turnover of approximately 150%. We rebalance the portfolio every 4-6 weeks. This model is based on Portfolio123's 'GARP' model and is modified to work with the FOLIOfn's platform
Model Creation Methodology
Creating Portfolio123 models involves many steps and thorough analysis. First an overall strategy is chosen, like Value or Growth. Factors are then chosen that fit within the strategy, and show statistical significance in explaining excess returns. The models are then simulated using historically accurate data with no look-ahead bias. A variety of techniques are used to ensure that the results would have closely matched reality.
The results are rigorously analyzed using Monte Carlo simulations, rolling simulations, mean/variance optimization, correlation analysis, etc. The end results are models which are robust and have a high probability to perform as well as the historically simulated results during Bull and Bear markets.
NOTE: No manual intervention is allowed with the quantitative models' selections in any case except in very specific circumstances where the ranks derived from fundamental company data no longer reflects the value of the company. The following situations prevent the model from selecting the stock or trigger an immediate sell:
- Mergers and Acquisitions
- Fraud and Scams
- Indictments and or legal action against management team
Disclaimer: Ariston Advisors is a division of Consolidated Portfolio Review Corp. a registered investment advisor operating
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and does not constitute a complete description of our investment services or performance. This Web site is in no way a
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Simulated and Current results are approximate and are not an indication of future performance. Future performance is not guaranteed and model may perform better or worse.