Well, my Tradestreaming Hedge Fund rebalanced last week. The portfolio (access details here) is up almost 20% YTD, handily beating the S&P500 which is up a bit over 12% on the year.
I sold $MIC and $PCLN, two stocks that I’ve owned for the bulk of 2012. $MIC was a big winner and $PCLN had been as well, until it gave back much of its gains in August.
So far in 2012, I’ve made 17 trades. The portfolio is based upon the research I published in Tradestream Your Way to Profits and mimics certain strategies of 12 top hedge fund managers. It’s not as simple as merely aping top hedge funds’ trading — certain hedge funds replicate differently than others.
For example, investors may begin to approximate Warren Buffett’s returns by buying his largest holding while Pershing Square’s Bill Ackman may replicate best by buying his newest holding.
Anyway, couple more details about the Tradestreaming Hedge Fund Guru Portfolio
- 70.6% of trades profitable
- 0.622 correlation with S&P500
- Sharpe Ratio of 1.743
For more details, check out my strategy on Collective2
Top investment gurus like Benjamin Graham, Warren Buffett, Peter Lynch, and Joel Greenblatt didn’t only help investors enjoy huge market-beating returns in their funds. They also left behind the keys to the (investing) castle: the methodologies they applied in their market-trouncing performance. They’ve written books, complete with formulas and strategies, that propelled them to the top of their games and gains. Tradestreaming aims to recreate these strategies as we pave our own way to outperformance.
Because a small number of expert investors wrote extensively about their investing techniques, we can now create complicated computer programs to reenact their strategies and apply them to today’s stock markets. Screening 2.0 is all about using smart technology to bring history’s best investors back to life.
Stock screens have been around for decades. Using screens, we can filter through thousands of investment candidates on the prowl for the ideal investment. Old screens merely searched databases of stocks using specific criteria (i.e. all large cap stocks with a p/e less than 20 and a growth rate over 7%). Unfortunately, for most investors, these screens fail — searching for specific stocks tells us nothing about the success of such a strategy.
Screening 2.0, lead by analysis and money management firm, Validea, allows us to recreate history’s best investment strategies, computerize them, and then look for stocks that guru investors like Ken Fisher and Marty Zweig would have purchased themselves. Screening 2.0 is the marriage of search technologies and artificial intelligence with quantitative investing.
Make sure you check out the Tradestreaming for the Internet’s best stock screening resources.
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