Quality Value strategy

Benjamin Graham is primarily associated with selecting low valuation stocks. But his emphasis on buying high quality firm is often overlooked. Of the seven quality and quantity criteria that Graham suggested an investment opportunity should possess, only two were related to valuation and the rest were concerned with quality.

Our Quantitative Quality Value Strategy offers a new twist over the traditional value investing strategy. Instead of buying average quality stocks at discount prices, it seeks to buy high quality assets without paying premium prices. It uses both quality and value signals to yield sizable performance improvements over traditional value strategies.

The strategy has impressive back tested results over the last 14 years (1/1/1999-7/12/2013) – our 10 stocks quality value strategy has a 28.6% annual total return versus 2.2% for the S&P 500. The exceptional outperformance comes from the effectiveness of the strategy’s stock selection and our value added risk management overlay. The risk management overlay avoids illiquid stocks and stocks with less than $250 million market cap, enforces a 30% trailing stop loss rule, and it utilizes macroeconomic and market risk indicators to signal when we should take less risk.

Models represent hypothetical or simulated performance, not actual trading. Since the trades have not actually been executed, the results may have under-or-over compensated for the impact of certain market factors, such as liquidity. Our simulated returns include dividends, commission and slippage for each trade. Remember that past returns are no guarantee of future returns.
Models represent hypothetical or simulated performance, not actual trading. Since the trades have not actually been executed, the results may have under-or-over compensated for the impact of certain market factors, such as liquidity. Our simulated returns include dividends, commission and slippage for each trade. Remember that past returns are no guarantee of future returns.

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We offer a variety of income and quantitative strategies which we can combine to meet your financial need. Please contact us to receive more information on our investment strategies.