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 “Buying and Holding” (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 or the overall market during a correction.
We have created a hybrid portfolio by combining three base model portfolios. By doing so, we bring together three different objectives. Together these three diverse models take advantage of the markets inconsistent movements. There are 39 active stocks in the RAAMPS Equity Blend portfolio. As with all of our actively traded models we may be 100% in cash during market corrections. By combining three different models we believe we have created a rare model that seeks exceptional growth while mitigating risk.
The top ranked stocks are put into the “active” queue and become “open” as the RAAMPS® program indicates a “buy”. When a stock becomes a buy we purchase shares equal to roughly 4% of the total portfolio’s value. Each quarter we extensively examine each company as well as the long and short positions in place. This allows us to replace the weaker companies with stronger ones that will hopefully provide a better return. RAAMPS® provides “buy signals, “sell signals” and “reallocation sells”.