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Individual Investor
Eric Steiman
Professional Trader,Eric Steiman
- Education U Mass Amherst; Brandeis University
- Qualifications MSF
- Founded 2011
Undervalued Opportunities
The Undervalued Opportunities investment strategy is suited for long-term investors that are seeking concentrated exposure to growth investments. It seeks absolute returns that attempt to beat the S&P 500 over the long term.
The strategy usually seeks to buy well-known growth companies with strong, recognizable brands.
I will also short stocks in an effort to profit from potential declines when my research suggests that individual growth stocks are overvalued.
My goal is to do no worse than the S&P 500 during market declines and to outperform it in strong market uptrends.
The strategy usually seeks to buy well-known growth companies with strong, recognizable brands.
I will also short stocks in an effort to profit from potential declines when my research suggests that individual growth stocks are overvalued.
My goal is to do no worse than the S&P 500 during market declines and to outperform it in strong market uptrends.
I seek to buy market-leading growth companies when I believe that stocks are temporarily unpopular. My goal is to buy ahead of improving revenue and earnings. I watch for multiple signs of potential improvement, such as company hiring practices, stock buybacks or new product announcements. Then I make detailed estimates on how much the potential improvements can boost a company’s financial results.
I look for multiple potential signs of weakness before I make a decision to short an individual stock. Then I estimate how far a company may fall short of financial expectations.
My investment strategy also uses moving averages and market indices to help guide when it’s time to add to or subtract from existing positions.
I look for multiple potential signs of weakness before I make a decision to short an individual stock. Then I estimate how far a company may fall short of financial expectations.
My investment strategy also uses moving averages and market indices to help guide when it’s time to add to or subtract from existing positions.
Buy and sell decisions are based on a bottom-up process that begins with modeling the earnings and growth rates of potential investments.
I seek to buy positions when my long-term estimates are higher than the average of analysts studying that same company. Conversely, I tend to sell or short positions when my long-term estimates are far lower than the rest of the crowd.
I seek to buy positions when my long-term estimates are higher than the average of analysts studying that same company. Conversely, I tend to sell or short positions when my long-term estimates are far lower than the rest of the crowd.
I attempt to own a concentrated group of roughly 10 holdings. The maximum concentration for any one position is about 25%.
The strategy will sometimes use up to 30% leverage in strong uptrending markets. The strategy will change to a short bias when market conditions for growth stocks begin to deteriorate. All holdings are frequently reviewed based on both fundamental and technical measures.
The strategy will sometimes use up to 30% leverage in strong uptrending markets. The strategy will change to a short bias when market conditions for growth stocks begin to deteriorate. All holdings are frequently reviewed based on both fundamental and technical measures.
I tend to sell long positions when I believe the company is unlikely to meet long-term earnings and revenue estimates. I also may sell when a position reaches an uncomfortably high concentration within my model.
All holdings are reviewed frequently based on both fundamental and technical measures. Stocks that offer poor risk-reward based on my preferred parameters are sold.
All holdings are reviewed frequently based on both fundamental and technical measures. Stocks that offer poor risk-reward based on my preferred parameters are sold.
The model may hold an occasional ETF in order to take advantage of an entire sector or region.
Model commentary
Eric Steiman: Why I'm staying short Apple
24 April 2013
The buyback was the only positive I could see in the report.
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