Over ten years ago, I joined a trading community called Marketocracy. I entered the community as “The Barnacle,” and began different trading strategies based on what I was studying. I learned that I am what they call a “Quant Trader.” I guess I was reasonably successful, since I was a member of their M100 club right until I took employment with a securities firm in 2011. I was at least successful enough to earn a mention in Dave Gaffen’s, Never Buy Another Stock Again: The Investing Portfolio that Will Preserve Your Wealth and Your Sanity. Since 2011, though, most of my portfolios have died on the vine from lack of attention, though there are some that are still performing well, even though there has been minimum turnover. Maybe there is a lesson there, but I digress.
I started a new fund with Marketocracy, and it will reflect the recommendations from a screen that I have spent years revising. I call it the “Defensive Growth” philosophy. It simply looks for companies with positive growth, controllable debt, and cash liquidity. At the same time, it refuses to over pay for growth, and it also understands that can there be too much sustainable growth. Stocks will be held for one year, and the reassessed.
I will position the portfolio on an allocation that is discussed with the American Association of Individual Investors. I am doing this to make sure that the portfolio is properly allocated among large cap, mid cap, small cap, international, and emerging market stocks.
So here it goes, these are the first entries in the portfolio:
AT&T (NYSE: T): AT&T is a telecommunications giant, offering land line and mobile voice communications along with broadband and digital TV services.
Activision Blizzard, Inc. (NASDAQ: ATVI): Activision Blizzard is a leading publisher of videogames, notably World of Warcraft, Call of Duty, Guitar Hero, and Tony Hawk.
CF Industries Holdings, Inc. (NYSE: CF): The Company is a manufacturers and distributors of nitrogen and phosphate fertilizer products in North America.
Ebix, Inc. (NASDAQ: EBIX): The Company is an international provider of software and Internet-based solutions for the insurance industry.
National Research Corp (NASDAQ: NRCIB): The Company is a provider of ongoing survey-based performance measurement, improvement services and governance education to the healthcare industry in the United States and Canada.
Copa Holdings, S.A. (NYSE: CPA): The Company is a Latin American provider of airline passenger and cargo service through its two principal operating subsidiaries, Copa and AeroRepublica.
Perfect World Co., LTD (NASDAQ: PWRD): The Company is engaged in research, development, operation and licensing of online games.
Telecom Argentina SA (NYSE: TEO): The Company provides fixed-line public telecommunication services, international long-distance service, data transmission, Internet services and directories publishing services in Argentina.
It should be pointed out, that no companies in the established international markets passed the screen. I will hold First Trust Developed Markets ex-US AlphaDEX Fund (FDT) as a place holder until proper candidates make their way to the forefront.
In the meantime, happy investing.
DISCLOSURE: I do not receive any compensation for my stock selections. I, or members of my family, currently have direct holdings in AT&T and CF Holdings.