E A Stock Picking Method That Beats The Market

The 6-month performance of Portfolio Armor's top names from July 27th.

Generating Alpha Via Security Selection

Since June 8th, I've been posting Portfolio Armor's top ten names each week. These names are ranked based on my site's estimate of their potential returns over the next 6 months, net of hedging costs. As of Friday, we have actual 6-month returns for the first 9 weekly cohorts. 8 out of 9 of them beat the SPDR S&P 500 ETF (SPY), and the average 6-month performance of each weekly cohort was 22.18% versus 13.07% for SPY. This is further evidence that Portfolio Armor's security selection method, which uses price history as well as option market sentiment, delivers alpha, as I elaborate below.

Top Names From June 8th

Let's look at exactly what the top names were each of these weeks, how that data was time-stamped, and how each name did over the next 6 months, starting with the June 8th cohort.

These were the top ten names as of June 8th, presented here at the time: Align Technology (ALGN), Apple (AAPL), Nvidia (NVDA), MercadoLibre (MELI), Illumina (ILMN), Netflix (NFLX), Electronic Arts (EA), Straight Path Communications (STRP), Priceline (PCLN), and Lululemon (LULU).

And here's how they did over the next 6 months:

On average, the top names were up 8.78% over the six month period, versus 9.99% for SPY.

Top Names From June 16th

These were the top ten names as of June 16th, presented here initially: Brinks (BCO), CSX (CSX), TAL Education (TAL), Activision Blizzard (ATVI), Lam Research (LRCX), IAC/Interactive (IAC), Nvidia (NVDA), HDFC Bank (HDB), JD.com (JD), NetEase (NTES).

And here's how they did over the next 6 months:

On average, the top names were up 19.75% over the six month period, versus 10.94% for SPY.

Top Names As Of June 22nd

These were the top 10 names as of June 22nd, presented here initially: Alibaba (BABA), TAL Education Group (TAL), IAC/InterActive (IAC), Coherent (CORH), Align Technology (ALGN), Activision Blizzard (ATVI), Brink's Company (BCO), Wynn Resorts (WYNN), HDFC Bank (HDB), NetEase (NTES).

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Alpha Stockman 3 months ago Member's comment

Impressive!

David Pinsen 3 months ago Author's comment

Thanks, Alpha.