Unlocking Investment Potential: A Smarter Strategy for Superior Portfolio Performance

Commonly used data sources and traditional investment tools have proven to be ineffective.

Many portfolio managers who aspire to achieve investment excellence have been challenged by inadequate support. They contend with subpar data, subjective research, and conventional tools, which can hinder their quest for strong risk-adjusted returns.

The Trendrating platform enhances the discovery of fresh perspectives and smarter insights. It offers an innovative approach that combines:

1. Allocation to targeted sectors.
2. Stock selection based on the most rewarding parameters.

Step 1: Conduct a comparative analysis of performance across sectors

Step 2: Select the best-performing sectors and test different combinations of fundamental rules to identify the most effective strategy for each sector, selecting 30 stocks per sector.

Step 3: Test a strategy that allocates capital to three sectors, using the optimal selection sequence for each. The portfolio allocates funds as follows:

40% to Information Technology

30% to Consumer Discretionary

30% to Industrials

The test results show a 10-year annualized return of 23.46% before dividends, which is 12.95% above the S&P 500 index, with a Sharpe Ratio of 1.23. Data as of August 19, 2024

Summary:

This approach demonstrates a smarter, data-driven methodology for obtaining insights and adding measurable value to the investment research process. By rigorously evaluating these criteria and identifying the top-performing factors, investors can establish a solid base for portfolio construction. The addition of trend validation as an overlay further refines the strategy to help make more informed decisions, capitalising on opportunities and managing risks more effectively.

The evaluations, rankings and information provided by Trendrating (the “Services”) are provided solely for the use of finance professionals (the “Users”) who have been issued a license to use the Services by Trendrating and who, by nature of their status as investment professions understand, or are expected to understand, the complexity of finance products, the functioning of the markets and the risks inherent in them. The Services are not offered for use by persons not employed or actively working as professionals in the finance and investment industry. The Services are to be used entirely at the risk of the Users. Included in the Services are forward-looking statements that are based on observations, assumptions and calculations that reflect Trendrating’s expectations. Forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to materially differ from those expectations. The Services are not intended to constitute a recommendation of any specific security or financial product and are to be implemented solely in conjunction with or as part of a complete investment evaluation conducted by the Users. Under no circumstances shall Trendrating, its officers, directors, employees or agents be liable for any damages, lost profits or investment losses that result in any way from use of the Services or any interruptions, errors or delays in the Services. © Trendrating S.A. All rights reserved.