It is always our passion to discover ways to outperform this market which is increasingly challenging as we are confronted with ever more exogenous variables such as central bank actions, geopolitics, etc. which often distract our analysis and decision making process. At WingCapital, we strive to filter through the noise and determine the best investment decisions on a day to day basis.
We use number of quantitative, technical and statistical methods, collectively named WingQuant, to drive our stock picking and portfolio allocation, trying to find sectors and individual equities that most likely outperform and generate alpha. Our latest product is a Long-Short Portfolio which tactically long and short combinations of individual equities with a short-term timeframe (1-2 week holding period). This is catered for more active traders who can buy and sell short stocks on a daily basis and monitor the markets frequently.
Long-Short Portfolio YTD Performance vs. SPX (*dividend/transaction costs not included)
The Long-Short Portfolio has not only proven to outperform during both bull and bear phases in terms of return, the balanced approach also minimizes volatility with beta almost near zero as the market risk exposure in Long and Short portfolios offsets each other.
|Beta vs. SPX|
The portfolio rebalances its long/short exposure % accordingly based on prevailing market technicals:
Here is the current portfolio which we will provide update periodically:
|Symbol||Name||Sector||Position||Initiate Date||Initiate Price||Current Price||Return %||Daily Chg%|
|VRSN||Verisign Inc.||Information Technology||Long||2016/8/15||81.81||75.05||-8.26%||1.15%|
|AMT||American Tower Corp A||Financials||Long||2016/8/16||114.12||113.61||-0.45%||-0.65%|
|JNJ||Johnson & Johnson||Health Care||Long||2016/8/16||120.33||119.92||-0.34%||-0.66%|
|TJX||TJX Companies Inc.||Consumer Discretionary||Long||2016/8/17||78.19||79.35||1.48%||1.98%|
|ENDP||Endo International||Health Care||Long||2016/8/17||22.74||23.03||1.28%||0.61%|
|MO||Altria Group Inc||Consumer Staples||Long||2016/8/17||66.46||66.33||-0.20%||0.03%|
|LOW||Lowes Cos.||Consumer Discretionary||Long||2016/8/17||76.88||77.82||1.22%||1.82%|
|TGT||Target Corp.||Consumer Discretionary||Long||2016/8/18||70.3||70.12||-0.26%||-0.26%|
|T||AT&T Inc||Telecommunications Services||Long||2016/8/18||41.4||41.01||-0.94%||-0.94%|
|MRO||Marathon Oil Corp.||Energy||Long||2016/8/18||16.68||16.8||0.72%||0.72%|
|QCOM||QUALCOMM Inc.||Information Technology||Short||2016/8/17||62.28||62.76||-0.77%||0.44%|
|TXN||Texas Instruments||Information Technology||Short||2016/8/17||69.82||70.27||-0.64%||-0.20%|
|NWSA||News Corp. Class A||Consumer Discretionary||Short||2016/8/17||13.76||13.74||0.15%||0.07%|
|ADI||Analog Devices, Inc.||Information Technology||Short||2016/8/17||64.2||64.14||0.09%||-0.02%|
|ADS||Alliance Data Systems||Information Technology||Short||2016/8/18||202.31||200.14||1.07%||1.07%|
|LLY||Lilly (Eli) & Co.||Health Care||Short||2016/8/18||79.78||79.06||0.90%||0.90%|