Use Focus Growth and Absolute Return to provide diversified exposure to different investment strategies in one single account. Strategy weighting is adjusted from time to time based on market conditions.
Following daily updated equity curve and drawdown charts are produced from Retirement Smart portfolio. Portfolio return and drawdown calculations are not audited and are provided by Analytic Investment Management LLC for informational purpose only. Portfolio return and drawdown data net of custodial and trading expenses are directly obtained from one separately managed brokerage account at Interactive Brokers and reflect the deduction of annual 2.0% management fee on daily basis.
Past performance is not indicative of any future result. Investing in this portfolio involves risk, including the risk of principal loss. Don’t invest with money you can’t afford to lose. Standard & Poor’s 500® Total Return (S&P 500®TR) is comprised of 500 stocks representing major U.S. industrial sectors. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”). Charts and S&P 500® Total Return data are provided by Sheets – Google Docs.
Focus Growth seeks to capture mispricing opportunities in large cap stocks due to market inefficiency, by continuously computing relative valuation of all large cap stocks according to growth factors such as earnings and sales growth, P/E/G ratios, operating margins, debt-to-equity, free cash flow and relative price strength. Weight of portfolio holdings is calculated based on its appreciation potential, which may change very frequently. Positions are sold or reduced when stocks become more expensive relative to other stocks based on valuation factors, and are replaced with stocks of cheaper valuations.
Absolute Return systematically uses following simple yet effective investment disciplines as its core algorithms: (1) when market volatility is low or when market is undervalued, oversold, or trending up, invest in leverage long/volatility ETFs/ETNs; (2) when market is overbought or overvalued, stay in cash; (3) when recession is pending, or market is volatile or trending down, invest in leverage inverse ETFs/ETNs.
Absolute Return mainly trades following leverage/inverse/volatility ETFs/ETNs: UPRO(ProShares UltraPro S&P500)/SPXU(ProShares UltraPro Short S&P500), XIV or ZIV(VelocityShares Daily Inverse VIX Short-Term or Medium-Term ETN)/VXX(iPath S&P 500 VIX Short-Term Futures ETN), TQQQ(ProShares UltraPro QQQ)/SQQQ(ProShares UltraPro Short QQQ), and TMF(Direxion Daily 20+ Yr Treasury Bull 3X)/TMV(Direxion Daily 20+ Yr Treasury Bear 3X). Based on market conditions, however, it can trade other leverage/inverse/volatility ETFs/ETNs as well.
- Feel uneasy or even lose sleep when the value of investment accounts goes up and down with the market. Financial markets will always go up and down, and there is no way to predict how volatile future turmoil will be.
- Give up on investment and withdraw from the market after stock market crash. If the stock market suddenly collapses, this portfolio will not be spared. Those who can calmly analyze the value of the stocks after stock market crash and do timely bargain hunting are always the biggest winners in the market.
- Fund minimum investment US$250,000.
- Deduct automatically from account 2% annual management fee, prorated on a daily basis.
- California residents or non-US residents.
- Know how to open an online brokerage account, and know how to use Gmail and Google Docs.
- Investment objective is aggressive growth, investment time horizon is more than 10 years, and investment amount is less than 30% of net worth.
- Account transactions are quite frequent, up to thousands of transactions per year. The account holder is responsible for the tax filing for these transactions.
- Agree with all our legal disclaimer and disclosure.
- Agree with and sign Investment Advisory Agreement for Retirement Smart Strategy.