The Low Beta Portfolio invests only in securities that have shown less volatility than the S&P 500. The strategy may underperform the S&P 500 in bull markets, but seeks to outperform in flat and down markets. It favors stocks with strong dividend yields and low valuations.
Mr. Wang is a value investor. He believes that there is a history of a “winner’s curse” among many of the market’s most popular stocks. As academic research suggests, popular high-beta stocks may not offer rewards that are commensurate with their higher risk. For that reason, he has built a portfolio of low-beta stocks that seeks to offer an attractive mix of risk-reward.
Karagosian’s Mr. Wang uses simple screening tools to find a universe of low-beta stocks with a history of above-average dividend yields, low price-to-earnings ratios and low debt-to-equity ratios. He then analyzes company filings, proxy statements, press releases and earnings conference calls to help narrow down a universe of stocks to buy. His fundamental research is also the primary driver of his sell decisions in the long-only strategy.
Mr. Wang seeks to hold a mix of 10 to 25 individual low-beta stocks. The strategy still seeks to have at least 80% invested at all times and may hold a larger percentage of cash when Mr. Wang is anticipating a strong market decline.
The investment strategy evaluates each security individually. Mr. Wang typically closes a position when a stock has risen above his estimate of fair market value. The investment portfolio is rebalanced every 6 to 12 months and typically sees about 50% portfolio turnover in a year.
Past performance is no guarantee of future results.
Performance of the portfolio manager's account is calculated by Covestor on a daily time-weighted basis, including cash, dividends and earnings distributions, and broker commissions. Manager returns include trades that fail Covestor's trading rules, do not reflect any Covestor suitability or risk score restrictions and are exclusive of Covestor fees. More
Average subscription returns ("Avg Sub" or "Avg Client") are calculated by Covestor and are composed of the average, daily, time weighted returns of all active subscriptions to the underlying portfolio. These daily average returns are then linked together for the timeframe requested. In addition, these returns include cash, dividends and earnings distributions, brokerage commissions, Covestor advisory fees, and reflect individual client suitability and risk score restrictions. More
All graph data is as of the end of day for the referenced period, unless otherwise specified. The subscription minimum is the minimum subscription required to follow a particular portfolio. The minimum amount is determined by Covestor, based on the characteristics of the underlying portfolio. It should not be considered as specific investment advice for your investment situation.
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Benchmark returns have been calculated by Covestor using a time-weighted calculation of daily index valuations. Benchmarks presented are total return and therefore inclusive of cash, dividends and earnings distributions but not transaction costs.
Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value.
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These securities are currently held in the portfolio manager's brokerage account. Holdings in the "Replicable Holdings" table currently pass Covestor's trading rules, subject to individual client constraints. Eligibility for replication may change over time. Actual client subscription holdings may vary.
These transactions were executed in the portfolio manager's brokerage account. Those marked as "Replicable Transactions" passed Covestor's trading rules and were eligible for replication at the time of execution, subject to individual client constraints. Eligibility for replication may change over time. Actual client subscription trade activity may vary.