Strategy: VIEW
Assertive
The ValuEngine View Strategy is the product of a sophisticated stock valuation model that was first developed by ValuEngine’s academic research team. It utilizes a three-factor approach: fundamental variables such as a company’s trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company’s future 12-month EPS, and the 30-year Treasury yield are all used to create a more accurate reflection of a company’s fair value. A total of eleven additional firm-specific variables are also used. The ValuEngine View portfolio is constructed by integrating this model along with some basic rules for market capitalization and industry diversification.
Portfolio Liquidity Requirements: Stock must have prices over $5, over 100,000 daily trading volume, and 1 billion in market cap size. This ensures that stocks can be entered and exited easily and quickly.
Screening Criteria: Strong Buy and Buy rated, top forecasted target price stocks for the next month according to ValuEngine (ValuEngine.com) propriety research and models. Must also be at least 1% undervalued by the ValuEngine Proprietary Valuation model. This means it is a combined approach utilizing both proprietary forecast target price and valuation models. The portfolio is adjusted monthly and contains 20 positions. An equal amount of capital is allocated to each stock, with a small cash position.
The portfolio manager does at times make manual adjustments. For example, adjusting the number of stocks in a given sector if the model results are too heavy in one or more sector groups. The portfolio manager also reserves the right to replace a stock with another one from the screening results if there are issues that are not accounted for in the models. Chinese ADR stocks (foreign stocks that trade on US markets) are currently not included, due to volatility. ADR's from other countries are permitted.
Actual Traded Performance includes trading costs and management fees already deducted. Unless otherwise noted, the Money Weighted Return (MWR) methodology is used to calculate returns. All returns numbers come directly from the custodian of the accounts, Interactive Brokers LLC.
Traded Returns* (Inception Date 1/21/2016)
Historical Performance
YEAR | RETURN |
|---|---|
2024 | 28.61% |
2023 | 58.93% |
2022 | -12.08% |
2021 | 1.73% |
2020 | 62.38% |
2019 | 0.93% |
2018 | -18.98% |
2017 | -5.99% |
The information presented herein is only for informational purposes about ValuEngine Capital Management’s investment strategies and is not intended as a solicitation to invest.
The historical returns presented above are based on client managed account performance and include all management fees and trading commissions. Past performance is no indication or guarantee of future results. Performance numbers are calculated by the custodian Interactive Brokers using a Money Weighted Return (MWR) methodology. Detailed information on how Interactive Brokers calculates MWR, can be found HERE.
Please see disclosures for additional details.