US Growth Portfolio: About

1 Kasım 2021
The US Growth Portfolio is a 14-stock portfolio, suitable for investors looking to grow their investment capital. The portfolio is a combination of two systematic portfolios, being US Value and US Momentum, of which we hold the top-ranked seven stocks from both portfolios. The portfolio aims to make the bulk of its return through capital appreciation as opposed to earning dividend income.
Method Systematic
Goal Growth
Market US
Risk High
Rebalance Once a month
Horizon Multi-year
Minimum Suggested Investment $1500 per stock (model uses $5000)

 

Over the years, we have realized that Rivkin Investors have been using US Momentum and US Value portfolios together to have a growth portfolio with a similar return profile but lower short term volatility than the individual portfolios. As a result, starting from November 2020, we have aligned these two portfolios re-balance dates set up a 14 stock portfolio to make it easier for our members to implement.

Within the portfolio, the US Momentum portfolio is based purely on the performance of the stock’s share price.  This portfolio takes advantage of the “momentum effect” by buying the top 10 momentum stocks which are a member of either the S&P100 or the Nasdaq100. On the other hand, the US Value portfolio sources a pool of large-capitalization US stocks based on two key financial metrics, being Return on Capital Employed (ROCE), and Earnings Sustainability, from which the final portfolio is generated by ranking on dividend yield. The lower the yield, the higher the ranking.

In general terms, the Momentum portfolio uses technical factors, while Value uses fundamental factors. If you want to know about individual portfolios and how they work, please use the following links.

 

HOW TO FOLLOW THIS PORTFOLIO


To follow the US Growth portfolio, investors need to buy the stocks in the above table in equal weights. Weights can drift over time as stock prices move, but we only recommend re-balancing stock weights if they stray too far from the target weight. The stock volumes shown in this table are based on a $5,000 investment per stock.

To follow this portfolio; the minimum amount that we recommend is $21,000 which requires an allocation of $1,500 per stock.

Once per month, the list of stocks will be updated in what we call a ‘re-balance. This means investors will need to look at the new list and sell any stocks that are no longer on the list. After these stocks are sold, the new stocks from the current table can be bought.

Please note that the underlining portfolios remain unchanged and those members who wish to continue to follow the 10 stock portfolios, can consult the portfolios at any time.

 

Important notice:

Quantities and calculations in this post use the Rivkin Model and might differ from yours. This post does not constitute an invitation to buy or sell any securities. Before conducting any transaction, make sure you fully understand the terms of the product and the relevant risk factors involved. You can seek professional advice to determine the appropriateness and cost of any transaction from the broker you use.

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