Summary
- Diversified, model-driven portfolios leveraging signals, value, dividends, and momentum have consistently outperformed the S&P 500 over nine years on Seeking Alpha.
- The new CFO insider anomaly portfolio is already showing positive outsized returns, while major indices have all turned negative, led lower by the Nasdaq at -3.68% YTD.
- Market timing via proprietary Momentum Gauge signals enhances returns and risk management, enabling tactical shifts to cash during negative market phases.
- Combining sector rotation, factor-based models, and algorithmic signals enables strong risk-adjusted returns and adaptability to changing market flows.
- Dorchester Minerals, L.P., Harley-Davidson, AT&T, and Micron Technology exemplify distinct portfolio strategies, each selected for unique, data-driven reasons.
Introduction
CFOs derive statistically and economically higher abnormal returns from their purchases of company shares than do CEOs. Furthermore, CFOs’ excess return is robust to controlling for risk factors. (Wang, Shin, & Francis, 2012, p. 758).
In this article, I provide a sampling of how we optimize portfolio models to identify long-term continued strength, short-term aggressive breakout stocks, and even apply timing models to long-term value stocks for the best results. As I repeatedly tell our investment community, it is important to not only diversify your stock selections, but it is also critical to be where the market fund flows are improving for the best returns.
As I detailed in my most recent forecast articles
- If This Is A 2022 Market Repeat, Here Is What Likely Happens Next
- Mega Cap 8 Declining As Top Performers Emerge In Major Value Rotation
These prior forecast articles are not just about what is likely to come next, but how to position for it. They provide a macro context for the stocks and signals that I share in this article.
Four Trades From Different Portfolio Models
First, let me briefly introduce a sample of stocks from the portfolios beating the markets for the past 9 years on Seeking Alpha. These model portfolios are released at regular weekly, monthly, and annual intervals depending on the portfolio type. Then I will explain why each stock was selected for its respective portfolio. Last, I will share why timing matters even in our value investing portfolios for long-term growth.
For this article I will share four stock selections from four different portfolio models out of the 10 different portfolio types enhanced from financial literature beating the S&P 500 for members:
- Dorchester Minerals, L.P. (DMLP) – CFO insider portfolio
- Harley-Davidson (HOG) – Piotroski-Graham value portfolio
- AT&T (T) – Growth & Dividend portfolio
- Micron Technology (MU) – Active Premium portfolio
Next we will explore how each of these stocks is selected for their specific portfolio model.
