Service managed by Daniel Vermeersch, a former quantitative fund developer and manager for several banking institutions.
What we do:
We issue a weekly report to monitor the stock market’s heterogeneity and identify investment ideas. We do not provide trading or investing signals. We monitor a list of stocks that show a strong dynamic. It will help you build an outperforming stock portfolio, with a controlled risk level. Our reports have an educative purpose.
Investment style:
Quantitative, dynamic, powered by price momentum, no subjectivity, no AI.
Investment universe:
The 200 largest American companies. Quarterly rebalancing to benefit from the survivorship bias.
Investment time horizon:
A few months to a few quarters.
Focused portfolio:
Our reports help investors build their own stock portfolio that we recommend being made of 15 to 20 stocks. That size eliminates a large portion of the unsystematic risk while giving you a chance to outperform the market with a decent level of risk.
Price Momentum:
The best past performers are likely to remain good performers. We monitor multi-timeframe scores (a slow and two fast scores) to build our momentum list. When the fast score is high enough (>70) with one of the slow scores also above that level, the stock’s dynamic is strong. These high-scored stocks are highlighted in our reports. At this stage, we have about 45 candidates that could join a momentum portfolio. We could just select the 15 or the 20 largest companies and consider the job done. However, some of these stocks can show a parabolic move, which often ends badly. In addition, we might have a high concentration within a sector and face a severe decline when a sector rotation occurs. Therefore, robust risk control is required to succeed.
Risk Management:
Our reports help you monitor a set of data that control the risks. Risk monitoring also helps reduce the number of high-scored stocks to own. You can reach a portfolio size of 15 to 20 stocks by rejecting momentum stocks that increase your risk too much or are redundant to other stocks.
Volatility: We monitor the volatility of the last 52-week returns. We advise you to give a smaller weight or stand aside stocks with a volatility > 50%. They increase your total risk and hurt your portfolio during adverse periods.
Beta: It’s a measure of the stock’s risk vs. the index. We recommend you monitor the average beta of your owned stocks and keep it in the range of 0.7 to 1.3, depending on the market’s dynamic. If your average beta is too low, your portfolio will be too inert, and you could be missing opportunities. On the other hand, a too-high average beta will carry too much risk, and you will face an important drawdown when the market moves against you.
Correlations: We monitor the coefficients of correlations of our high-scored stocks. Some of them show a weak correlation with other stocks and are interesting sources of diversification. Other stocks show high correlations and are likely to keep moving together, they are redundant. Keep control of the correlations between your owned stocks. Owning too many highly correlated stocks increases your risks. These stocks will move together and amplify your drawdown during a correction. When you consider a new stock to purchase, make sure that it is not too correlated with an already owned stock.
Reports:
Our reports help you build your focused portfolio, as they display the momentum scores. Highlighted high-scored stocks are good stocks to own as their price momentum is strong. In addition, the beta and volatility of each stock is mentioned so that you can easily monitor your average beta and identify stocks that could increase your risks above your tolerance level. A study of correlations between the high-scored stocks is also performed. High-scored stocks are classified in 3 categories: 1) lower risk with low correlations, 2) higher risk with low correlations, 3) highly correlated stocks.
From 45 momentum stocks to 15 selected stocks. The last section of our reports contains our BSP portfolio, made of 15 stocks. They are selected with a detailed systematic approach that you can adopt or modify according to your risk tolerance. More information is available in our sample report.
Performance monitoring:
The chart below compares the 52-week performance of the equally weighted high-scored stocks (about 45 stocks) with the 200 equally weighted monitored stocks, and the S&P 500 tracker.
Last 52 week returns (30MAY25-29MAY26):
SPY: +28.3%; 200 stocks equally weighted:+37.3%; High-scored stocks: +75.2%
Sector allocation:
The bar chart below shows the sector allocation of our high-scored stocks. It is updated weekly. Last closing prices: FRI 29MAY26. Our subscribers receive data for individual stocks.
Sample Report:
Subscription:
To receive our reports for 13 weeks, visit the secured link below and proceed to the payment of 150 USD. Reports will be sent to your email during the next 13 weekends, before Monday’s market open.
https://www.paypal.com/ncp/payment/P5QUZV5C3AC78
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