Our “Risk Averse Actively Managed Portfolio Strategy” or RAAMPS® uses both a company’s fundamentals and technical in our trading strategy. We do not believe in “Buy and Hold” (unless the company is high quality and pays a dividend) but rather actively managing each portfolio and buying and selling as the momentum in a particular company increases or decreases. We believe that cash is an asset class and we do not need to be invested in a particular company during a correction.
BioMedTech is as the name suggests focused on the Biotechnology and Medical Technology fields. A lot of BioMedTech companies have prices below $5.00 however we do not invest in those companies. The initial exposure to any one company will be 3%. The portfolio itself tends to have higher volatility than the broader market and also seems to carry larger cash protection during market corrections. We consider this a moderate-aggressive risk-return portfolio.
The RAAMPS process was created to provide asset protection by actively managing the risk of holding a particular stock. RAAMPS uses a unique proprietary four-step process. It first uses fundamentals then technical analysis. We actively manage our portfolios in an attempt to achieve solid returns while also mitigating risk.
We screen potential investments by focusing on specific fundamentals and tendencies. Next, we use our proprietary ranking algorithm to select the strongest stocks within the basket of stocks we received from our screen. We have found that this step provides significant alpha based on our past performance.
Our portfolios are actively managed using term sentiment trading algorithms. These algorithms initiate buys and sells signals, taking human emotion out of the portfolio management and allowing for the process to be consistent and repeatable, therefore, hopefully making the performance repeatable as well.
Lastly, we refresh each of the portfolios using the steps outlined above. We take out stocks that are not active and/or underperforming and replace them with the strongest stocks as indicated by our screening and ranking process. This helps to increase the likely hood of significant alpha by taking advantage of the sector rotations that occur in the broader markets.