Navellier's portfolios are style-pure and maintain an extreme discipline within the investment process. We've designed our equity-management program to achieve the highest possible returns with controlled risk. Using a comprehensive quantitative and fundamental screening process, we're able to find and exploit inefficiencies in the market.
Since 1987, we have been selecting growth stocks that significantly outperform the overall market with a long-term investment of five years or longer with our disciplined, quantitative investment process. With our state-of-the-art research techniques, we are able to continually adapt to the constant changes on Wall Street.
For most of our products, we use a highly disciplined "bottom up" stock-selection process:
- The first step employs quantitative analysis of market and individual stock statistics using a proprietary computer screen. This allows us to measure reward (alpha) and risk (standard deviation) indicators for the appropriate market capitalization range for each product. We then rank stocks on the reward/risk measure and reduce the initial investment universe to only those stocks in the upper percentiles of the reward/risk measure.
- In the second step, we apply fundamental variable screens to the stocks with the highest reward/risk measures. This process typically highlights stocks that are best characterized as companies with exceptional profit margins, excellent earnings growth and reasonable price/earnings ratios (based on expected future earnings).
- In the third step, we use a proprietary optimization model to maximize portfolio alpha while minimizing portfolio standard deviation. This efficiently allocates the stocks and creates portfolios that are well diversified across sectors and industries.
Navellier's dynamic, disciplined, quantitative approach is designed to build portfolios that significantly outperform the market over an investment horizon of at least five years while maintaining style consistency.
Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested.