I've been beating the market by a couple % a year based on a system that evolved from almost entirely intuitive to about 70% quant, 30% intuitive. I did some research last year to try to improve my returns and developed a new system that is about 90% quant, 10% or less intuitive (where "intuitive" is the sum total of everything I know about everything). It was working so well in testing that I decided to just jump in whole hog and spent the first two months of the year transitioning to a HTO (high turnover) portfolio that would use this method while holding 24-33 stocks for an average duration of 2-5 months (I have other holdings outside of HTO and HTO is in an IRA so s-t capital gains are not an issue). [more]
My HTO portfolio was up 0.16 for the week while the index* was down 0.34. [more]
I sold MDAS and bought ARII. That's probably my only move for the week as I don't have anything else that I want to part with right now. If I had more money to spend, it would be on one or more of the following:
RWT, PIKE, EVR, AVY, CINF, MNRK, JCTCF, MX, OMAB, HSH, STRT, MDCI, CLGX, DLAKY, WX, XL, CNO, EMCI, ANCX, FDEF, FBMI or GBDC.
So today was one of my better days on CAPS but one of my worst in real life. My HTO portfolio was down 0.90% for the day while the index was down only 0.15%. Ouch. That put me in the negative for the week (-0.11% vs +0.63%) though I am still ahead 4.39% to 3.11% for the index. [more]
Last week was a good week, portfolio up 4% (3.99) while the index was up 2.33% (VTI). [more]
To be honest, I think that most of my success over the past 8 years has been due not to stock picking skills (though that has helped some) but to the simple strategy of staying fully invested. Not that I don't have any bonds or alternative investments, but, with regard to the portion of my portfolio allocated to stocks (based on a % based on my age) I have stayed fully invested in equities and out of cash (with rare and brief exceptions that didn't do me any good). [more]
HTO = High TurnOver, as I expect to hold these an average of 3 months each. More details about the portfolio in my previous blog post. [more]