Equity Opportunity Strategy
Transcription
Equity Opportunity Strategy
Equity Opportunity Strategy INVESTMENT OBJECTIVE: To provide superior risk-adjusted total returns relative to the S&P 500 by utilizing an in-depth, fundamental analysis to select the individual stocks from the Large-Cap universe. INVESTMENT APPROACH: Diversified core blue chip portfolio consisting of both growth and value stocks that holds core stock positions that are selected based on our conviction to hold the companies long term and their relative fundamental strength and market dominance in their respective sectors. The goal of this portfolio is to own the stocks of leading companies in different sectors that provide consistent, long term growth with lower beta than the broad market. Many of the names pay consistent dividends and are considered to be the bellwethers of the market. For those clients that are interested in enhancing their returns via selling covered calls, this portfolio is positioned properly to benefit from options premiums as well. May 2015 ADVANTAGES Through our investment process, we strategically select the highest quality stocks that are held long term in order to reduce turnover and short term gains. Tactical approach. We trade the SPDR S&P 500 (SPY) and the ProShares Short S&P 500 (SH) with 10% of the portfolio. Potential to capture the upside in strong market environments while actively hedging the downside during periods of market volatility. Employ fundamental and technical analysis in portfolio construction. MONTHLY PERFORMANCE (Net of Fees) Year 2015 SPY 2014 SPY 2013 SPY Jan -1.35% -2.96% -1.32% -3.52% Feb 4.10% 5.62% 2.68% 4.55% Mar -0.60% -1.57% 0.87% 0.83% Apr -0.70% 0.98% 1.17% 0.69% May Jun Jul Aug Sep 2.40% 1.29% 1.15% 1.30% -1.29% 2.61% -0.47% 2.32% 2.07% -1.34% 3.95% -1.38% 4.54% 3.17% Oct Nov 0.08% 2.36% 3.99% 4.63% 1.70% 2.75% 2.46% 2.97% Dec -0.91% -0.25% 1.02% 2.59% YTD 3.80% 3.19% 7.72% 13.47% 12.52% 14.02% PERFORMANCE STATISTICS Standard Deviation (Monthly): 1.86% % of Positive Months: 66.67% Standard Deviation (Annualized): 6.44% Maximum Drawdown: -2.25% Downside Deviation (Monthly):** 0.72% Longest Winning Streak Months: 5 Months Downside Deviation (Annualized):** 2.50% Longest Losing Streak Months: 2 Months Sharpe Ratio (Monthly):** 0.47 Average Monthly: 1.12% Sharpe Ratio (Annualized):** 1.62 Highest Month: 4.54% Sortino Ratio (Monthly):** 1.18 Lowest Month: -1.35% Sortino Ratio (Annualized):** 4.08 Net of Fee Returns Alpha (Monthly):*** 0.31% May: 2.40% Alpha (Annualized):*** 3.73% YTD:* 3.80% Beta:*** 0.65 Compounded Monthly Return: 1.10% Correlation Coefficient:*** 0.87 Compounded Annual Return: 14.02% R-squared:*** 0.75 Cumulative Return: 25.81% *YTD Through May 2015 | ** Based on RFR at 3.0% | *** Calculated against S&P 500 The performance presented is the actual net returns of accounts managed by Elite Wealth Management from September 2013 - Present. Returns are shown net of a 1% management fee, trading costs, and other direct expenses, but before custody charges, withholding taxes, and other indirect expenses. This Strategy has the ability to utilize options which involve risk and are not suitable for all investors. SEE IMPORTANT DISCLOSURE STATEMENT: http://elitewm.com/disclosures/ Copyright © 2015 Elite Wealth Management ● 1014 Market Street, Kirkland, WA 98033 ● +1.425.828.4300 ● [email protected] ● www.elitewm.com