The Sector Select investment strategy is a disciplined, objective investment process based primarily on a quantitative analysis of fundamental and technical factors that is designed to deliver robust performance. It is a large-cap strategy. Although the definition of large-cap stocks varies within the industry, Sector Capital Management defines “large-cap” as companies with a market cap of $5 billion or more.

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 historical earnings growth with relatively low P/E ratios. The quantitative nature of the formula allows Sector Capital Management to have a disciplined approach that is objective and repeatable over time.

In addition to stock selection the formula also encompasses a built-in sell discipline. However, if a stock that is currently part of the Sector Select portfolio falls below the $5 billion market cap cutoff, but still meets the rest of the evaluation criteria, Sector Capital Management will not automatically sell this stock.

The portfolio targets holding 50 approximately equally-weighted stocks. With a mix of value and growth stocks, this style-balanced approach is designed to produce consistent added-value performance over the S&P 500 Index. Furthermore, the Sector Select 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 Select strategy is a thorough screening process that is designed to produce a high quality stock portfolio with robust performance. It is a quantitative, disciplined approach that is objective and repeatable. The style-balanced approach is designed to minimize risk and provide consistent added-value performance over the S&P 500 Index in both value and growth markets. To see the Sector Select strategy’s performance click HERE.