Want to inject your stock portfolio with fresh energy in 2015? Pull up a chair and let me tell you about Trifecta Stocks, which totally rocked it in 2014.
Fundamental whiz Bryan Ashenberg and I were asked to co-manage a product for realmoney.com called Trifecta Stocks. Started in 2013, Trifecta uses a combination of three research analyses methods – quantitative, fundamental and technical – to find the right investment ideas. Our rigorous work and detailed analysis pays off – and you are the beneficiary.
Since the May 2013, the Trifecta portfolio has earned 41%, beating the benchmark VTI index by well over 12% (with dividends reinvested) and the SPX 500 by nearly 11% during that same time frame.
In this world of active management it has become increasingly difficult to beat the index. In January 2013, a passive investor could have put all of their money in an SPX 500 fund, do nothing and earn a nearly 50% return over the next 12 months. Those days are long gone. Today, you need diligence, research, discipline, and patience – and you get those with Trifecta.
During 2014, we added some steady names, along with some high-octane growth ideas. From the technical side, we witnessed some very nice setups this year that followed an upward path. Some of our best performers were boring stocks like CVS, Whirlpool, Magna and Foot Locker, all sporting gains of more than 30% since initial purchase.
(As a side note, Bryan and I are not beholden to any particular sector weighting. If a name meets the criteria of all three research methods, only then is it a candidate.)
Our discipline requires us to manage our positions appropriately, and it is here where Bryan and I agree. There is no ego or bias with any trade idea. If a name falls off the technical screen, we discuss it and sell. If it fails the fundamental tests, we discuss it and sell. If a name drops from the highest quant screen level, we sell. No exceptions. All names are up for a discussion and potential sale at any time if they do not meet our stringent criteria.
In 2014, we did some very timely and accurate trimming in the portfolio, avoiding some disasters and booking handsome profits – which is the name of the game. When crude oil collapsed last fall, we found ourselves in a decent position, as we only held one high-quality name in the portfolio (COP). As of this writing, we are only down 8% on the name. With crude oil down more than 60% from its June highs, that is not too bad!
In addition to finding trades and managing the portfolio, we have been conducting frequent webinars to get closer to our subscribers and learn from each other. The effort has paid off: Trifecta Stocks was Real Money’s best performing portfolio in 2014.
Want to learn more? Give our free trial a go!