The L2 Portfolio seeks to generate annual returns in excess of the S&P 500 Index over a multi-year time period. It takes mostly long positions in U.S. sector exchange traded funds (ETFs) that offer diversified exposure to large cap stocks.
Using a diversified equity sector rotation strategy, I seek to buy the sector ETFs that my research suggests will potentially outperform the S&P 500 Index.
The U.S. economy goes through various growth cycles. As such, one sector may outperform another depending on certain sector dynamics. I seek to beat the combined return of all the sectors by investing only in the ones that my research suggests are poised for outperformance.
Rockledge's research is based on a proprietary quantitative analysis known as the “Sector Scoring and Allocation Methodology” (SectorSAM). It provides individual sector forecasts through an analysis of over 200 fundamental, macroeconomic and technical factors. Using SectorSAM, I make systematic decisions on which sectors to buy and which ones to avoid.
I typically invest in equal-weight positions in the three sector ETFs that my research suggests will outperform over a specified time period.
Sector rankings are rebalanced monthly using my SectorSAM methodology. When the rankings change, I may determine to rebalance the holdings.
Generally speaking, the L2 Portfolio has typically deployed three equally-weighted positions. However, there may be cases where four sectors are held, and other times where it may hold only two sectors.
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 and positions that fail Covestor's trading rules, as a result, actual client returns will differ. Covestor advisory fees are simulated and applied retro-actively to present the portfolio return "net-of-fees".
Average client returns are calculated by Covestor and are composed of the asset-weighted average returns of all active client investments (some of which may contain investment restrictions) to the underlying portfolio. These daily average returns are then linked together for the timeframe presented. These returns include cash, dividends, earnings distributions, brokerage commissions and Covestor advisory fees.
All graph data is as of the end of day for the referenced period, unless otherwise specified. The investment minimum is the minimum investment 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.
The performance charts are provided for informational purposes only, and should not be used as the basis for making an investment decision. Variables such as corporate actions or foreign exchange may affect daily performance displays. We rely on mathematical formulas, computer programs, and pricing information from third-party vendors to provide these returns. Neither Covestor nor any of its data or content providers shall be liable for any errors in this information or any actions taken by you in reliance upon this information.
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.
All Portfolio Manager information including personal data, profiles, strategies, monthly investment reports, and historical results outside of Covestor has been provided by the Portfolio Manager. Covestor makes no representation or warranty of its accuracy, completeness or relevance and it does not represent the opinions of Covestor. Transaction history is available upon request. Portfolio classifications are provided by Covestor, and are intended to serve as a general guide.
The checked transactions passed Covestor's trading rules and were eligible for investment at the time of execution, subject to individual client constraints. Eligibility may change over time. Actual client investment trade activity may vary.
Index returns do not reflect any management fees, transaction costs or expenses. Individuals cannot invest directly in an Index.