The NorthStar StockCompass is a Long-Only Quantitative Approach Focusing on Real Returns
THE ANALYTICAL APPROACH
NorthStar Strategic Research takes an analytical and systematic approach to investment management. We base our financial decisions on objective criteria, not on opinions, feelings, or the latest news stories. Our goal is to provide our clients with reliable, consistent, and disciplined investment research.
QUANTITATIVE STOCK STRATEGIES
NorthStar's quantitative stock strategies are the cornerstone of our service. The stock portfolio seeks to outperform the S&P 500 on investment timescales of 3-5 years by selecting approximately 30 stocks with the highest estimated likelihood of price appreciation. Applying a proprietary suite of computer-based algorithms, we constantly analyze the latest financial and technical data for over 8,000 publicly-traded companies to maintain a diversified portfolio of value and growth stocks.
We evaluate and revise the composition of our stock portfolio on a weekly basis. This active management does not generate significant trading costs when partnered with a brokerage that features a flat fee structure such as Folio Investing. Folio clients pay a low trading cost, typically $290 per year, regardless how often equities are bought and sold.
PORTFOLIO CHARACTERISTICS
Stock Selection: Systematic selection based on a proprietary ranking system.
Diversification: Approximately 30 positions with varying weights. Typically less than 30% exposure to any sector.
Flexibility: Invests in equities of all market caps and sectors.
Blended: Buys growth and value stocks.
Regular Rebalancing: Stocks with declining rank are sold and replaced with new top-ranked stocks.
BENEFITS OF THE QUANTITATIVE APPROACH
Our research and experience demonstrate that discipline and consistency are two of the most important ingredients in any long-term successful investment strategy. Any strategy will go through periods of good performance and periods when it is out of sync with the market. Our approach provides the discipline to weather periods of underperformance and maintain rationality during times of strong performance.
Our portfolio is robust enough to adapt to changing markets, disciplined enough to maintain a long-term advantage, and diversified enough to reduce risk. NorthStar Strategic Research's quantitative strategies stay the course in difficult and in good times.
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