Alpha Dog

Our “Risk Averse Actively Managed Portfolio Strategy” or RAAMPS® uses both a company’s fundamentals and technicals 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.

Alpha Dog is based on combining the five highest historical performing base portfolios. These smaller portfolios use screens focused on: debt-free companies, the fundamentals of a company, companies with accelerating growth and growth at a reasonable price and lastly high-quality companies. While we do not invest in individual base portfolios we are able to see what works and what doesn’t within the RAAMPS platform. For example in a Buy and Hold portfolio it is best to have a stock that goes straight up with no corrections. Within a RAAMPS portfolio, the typical stock has up and downs, which most if not all stocks do, we perform the best when we can participate in the upward movement then sell and hold cash until the stock completes its’ correction then we can get in again. The initial exposure to any one company will be 2.5%. We consider this a moderate 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 a 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.