If you allocate investment capital to U.S. listed equity portfolios please continue.
"Stop wasting your time. You can always make money, but you CAN’T MAKE TIME. Easily get your investment back by simply purchasing one good stock idea identified with the Stock Analyzer." Well, that's what the "Old School Value Stock Analyzer.com" says anyway.
But instead of one stock we try to identify forty good stock ideas.
GAMG is a long only equity specialist who creates "High Fundamental" U.S. Listed Equity Portfolios that hold 40 equal weighted NYSE & NASDAQ Stocks for Separately Managed Institutional and Accredited Investor Accounts.
Maximum Return With Minimum Risk - That is the goal for your U.S. stock portfolio which we can run it for less cost and with lower risk.
Because this product is a derivative of a $30 billion U.S. state pension fund equity portfolio process that the manager worked with for five years.
It works because we only buy and hold U.S. stocks with high fundamentals that are above their 200 day MVA and consider selling if they go below their 200 day MVA or if they lag for too many quarters.
It works because it reduces risk by equally diversifying into 40 different U.S. listed stocks. It has and can probably do about 10% better than the market, per year, on mid cap or all cap and about 3%, per year, on large cap portfolios.
How to Manage $100 Million of
All stocks used for this portfolio are listed on
As an example, it is not difficult to run $100 million in a US Listed Equity Separately Managed Stock Account with 40 equal positions if we plan on holding most of them for least three years while replacing laggards.
Here are some liquidity numbers: $100 mill ÷ 40 stocks = $2.5 mill per stock. Take Apple (AAPL) for example: $2.5 mill ÷ AAPL at $587.44 per share = 4255 shares. Hardly an amount of shares worthy of writing home about.
How about Merk (MRK) at $38.36? 2.5 mill ÷ MRK at $38.36 per share = 65,172 shares. Ok, so that's a few more shares. So MRK had volume of 12,318,364. Our purchase then is 0.53% of the days total volume. That might take five minutes to buy.
If we were running $1 Billion it would be $25 mill per position, so $25 mill ÷ by, say AAPL, at $587.44 per share = 42,550 shares or 0.17% of AAPL's 24,772,443 shares traded. That might take five minutes to buy.
How about Merk (MRK)? $25 mill ÷ MRK at $38.36 per share = 651,720 shares. Our purchase then is 5.30% of the days total volume, something that might take one minute to several hours.
If we were running $1 Billion, could we do it and still rank in the top 5% of US listed equity managers? I think so (because we are just holding them and, where getting in is the most important point). The following example illustrates how it is done. $1 Billion sounds like a lot, and it is, but in reality it is just a function of liquidity if you limit your trading to 10% of each days volume. So, it's like steering a big ship.
If you look at the Total Market Cap of all the stocks in the Mid Cap model portfolio below, you will see that it was roughly $253 Billion. 1% of that is $2.5 Billion. Now divide that by 40 and you get $64 Million per position. For Google at $1100.00, $64 Million is only 57,000 shares or less than 3% of the days average volume.
The following illistration shows what a $100 million portfolio might look like equal weighted. These are actual stocks that the manager picked 5 years ago on Apl 16, 2009: