VolumeMover (66.33)

ALPHA, ALPHA and MORE ALPHA - Q3 RESULTS

October 11, 2009 – Comments (1) | RELATED TICKERS: TUP , URBN , CGA

First, a little background. I recently graduated from college with a Bachelors of Science in Finance and a minor in CS. For the past 3 years I have been working on developing a long/short equity strategy that would outperform the market during positive momentum and underperform the market during times of negative momentum. The primary focus of this strategy combines quantitative, fundamental and technical analysis into one powerful - alpha generating portfolio. My goal, is to eventually establish a hedge fund that will allow investors to have access to an entirely liquid, lock up free, investment vehicle that attains moderate to high returns with as little volatility as possible (yea, yea - that's everyones story), hey, why not try it? Keep in mind that the portfolio I am about to list had all of its trades implemented around July 1. Because this is my first blog, and want to get a feel for 'Motley Fool', I am going to list the top ten stocks that were in my portfolio by performance. Please keep in mind that I am going to be listing a new 10 stocks within the next couple weeks (shortly after earnings come out beginning Oct 12). Hopefully I'll be able to help some of you earn some attractive gains. As for the top performing stocks last quarter (out of a portfolio of 47 total stocks):

I calculated these returns by comparing the closing price of each equity on Oct 09 to the closing price of the equity on July 01.

  1) Tupperware Brands (TUP) - 52%

2) Urban Outfitter (URBN) - 50%

3) China Green Agriculture (CGA) - 48%

4) Netscout Systems Inc (NTCT) - 48%

5) BE Aerospace (BEAV) - 47%

6)   Bare Escentuals (BARE) - 42%

7) Innospec Inc (IOSP) - 39%

8) Par Pharmaceutical (PRX) - 38% 

9) Mckennson Corp (MCK) - 37%

10) Apple (AAPL) - 33%

So, all in all, I can say that Quarter 3 went  very well for me. By combining the additional 37 stocks with the ten listed above, there were some very generous returns earned over the past 3 months. The S&P500 was up roughly 16% between July 01 and Oct 09. The portfolio I constructed was up 22.70%. I could have attained a higher return, however, I placed emphasis on diversifying and making specific allocations depending on a variety of the calculations I used to determine the final portfolio weightings. 

 Please follow posting and look for my Q4 picks. I will let you know at the beginning of the quarter this time.