V-Rank-A Strategy (aggressive growth)

A portfolio of 20 – 40 equities which are members of either the S&P 500* large cap index or the S&P 400* mid cap index. Clients participating in this portfolio strategy should have a long-term investment time frame (5 years or more) and be willing to accept whatever volatility is likely to accompany this very aggressive all-equity portfolio.

V-Rank-A is a quantitative portfolio of 20 – 40 US based equity positions which are taken from the 900 securities that make up the S&P500 and S&P400 indices. Using the S&P indices as a base insures a certain level of quality in terms of industry representation, public float, liquidity, market capitalization, and earning capability.

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The V-Rank System

The V-Rank system itself is based largely on two statistical models developed by Vetta Investments: a “Valuation” model and a “Performance” model. These models, working together, will categorize any base group of securities in order of likely return over the next several months. The process can be visualized as shown below for the V-Rank-A portfolio.

These two models were developed and tested on a significant amount of historical data. While no system can be guaranteed to perform in the future as it has in the past, we believe that the psychology of the investing public is such that a certain amount of repeatability exists over time. The V-Rank process was specifically developed to capitalize on those variables that exhibit “sticking power” in terms of repeatability.