The Sector Plus investment strategy is a disciplined, objective investment process based primarily on a quantitative analysis of fundamental and technical factors. It is a mixed-cap strategy that consists primarily of large-cap stocks with mid-cap stocks making up to, but no more than 30% of the portfolio.

Through a quantitative, formula-driven evaluation of stock price versus earnings growth, Sector Capital Management is able to identify and select quality stocks that are trading at a discount relative to the present value of future earnings. This results in companies with high S&P and analyst ratings that have achieved superior earnings growth with relatively low P/E ratios. In addition to stock selection the formula also encompasses a built-in sell discipline. The quantitative nature of the formula allows Sector Capital Management to have a disciplined approach that is objective and repeatable over time.

The 70 – 90 stock portfolio (target # = 80) maintains a market weight in each of the ten GICS economic sectors, and the stocks within each of the ten sectors are approximately equally weighted. With a mix of value and growth stocks, this sector-neutral and style-balanced approach is designed to control risk and provide consistent added-value performance above the S&P 500 index. Furthermore, the Sector Plus strategy evaluates market strength and liquidity by selecting stocks that are actively traded and among the leaders in trading volume. The portfolios are reconstituted at least quarterly and rebalanced as needed.

The Sector Plus strategy is a thorough screening process that produces a high quality stock portfolio. It is a quantitative, disciplined approach that is objective and repeatable. The sector-neutral and style-balanced approach is designed to minimize risk and provide consistent added-value performance.

To see the Sector Plus strategy’s performance click HERE.