Valuentum subscribers have noticed that we’ve been quite busy as of late, adding protection to our portfolio in the form of a broader-market put option and taking some large profits in Astronics (ATRO) and eBay (EBAY).
We’ve highlighted our best-in-class hit rate–meaning that a large percentage of the firms we added to the portfolio are outperforming the broad market benchmark. But there are a couple ways of looking at our performance–the first is relative outperformance versus the market since inception, which is at 28 percentage points. Investors duplicating our portfolio are enjoying this outperformance.
Another way of looking at our track record, however, is to evaluate the performance of additions to the portfolio on the long side (purchases) since inception–i.e. long trades we have included in each email transaction alert to members since portfolio construction (May 2011). This is what some members that do not have sufficient capital to replicate the entire portfolio primarily use our newsletter for. What we found out here was pretty startling!
Looking at just the long ideas (options are typically used for portfolio protection and have been excluded), the performance of any given transaction-alert email has never been negative. What does this mean? Well, equity-only investors have never lost money on any given transaction alert. Second, looking at the stock ideas, the average performance of any given transaction alert is 39%, representing average outperformance of each transaction alert of 13 percentage points relative to the market. The previous eight transaction alerts have all generated relative outperformance for stock-only investors!
We provide the details of our transaction alerts below. The conclusion of these findings…it’s worth paying attention to Valuentum’s moves.
Past performance is not a guarantee of future results.