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