Thomas Roddy @ThomasRoddy: "𝗠𝘆 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆 🧠 I have a..."

France

𝗠𝘆 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆 🧠 I have a predominantly quantitative approach to investment and use large data-bases, advanced filtering, deep, multi-factor portfolio engineering techniques to take advantage of known risk premia to enhance risk adjusted returns. In simpler words, I select my investments by screening 1000s of stocks using large databases and filter for systematic characteristics that explain stock returns over time. These factors have been extensively studied in the financial literature and I believe provide the building blocks for superior portfolio returns. This is known as 𝗳𝗮𝗰𝘁𝗼𝗿 𝗶𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 or more specifically 𝗺𝘂𝗹𝘁𝗶-𝗳𝗮𝗰𝘁𝗼𝗿 𝗶𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴. . I consider 3 principal factors; 𝗴𝗼𝗼𝗱 𝘃𝗮𝗹𝘂𝗲, 𝗹𝗼𝘄 𝗯𝗲𝘁𝗮 (𝗩𝗼𝗹𝗮𝘁𝗶𝗹𝗶𝘁𝘆), 𝗮𝗻𝗱 𝗺𝗼𝗺𝗲𝗻𝘁𝘂𝗺. However, I also filter out any potential investments according to many red flag factors such as high debt etc. 𝗩𝗮𝗹𝘂𝗲 𝗮𝗻𝗱 𝗠𝗼𝗺𝗲𝗻𝘁𝘂𝗺: Identified by Eugene Fama and Kenneth French (Value) and Jegadeesh and Titman (Momentum) as foundational factors. 𝗟𝗼𝘄 𝗕𝗲𝘁𝗮 (𝗼𝗿 𝗟𝗼𝘄 𝗩𝗼𝗹𝗮𝘁𝗶𝗹𝗶𝘁𝘆): Pioneered in research by Robert Haugen and Nardin Baker, showing that low-volatility stocks can outperform on a risk-adjusted basis. Each individual investment may not have all of these qualities; However, I aim for the portfolio as a whole to have a balance between all of the factors, this approach also benefits from what’s know as 𝗳𝗮𝗰𝘁𝗼𝗿 𝗱𝗶𝘃𝗲𝗿𝘀𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻, performance is not reliant on one strategy. 𝗣𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝗖𝗼𝗻𝘀𝘁𝗿𝘂𝗰𝘁𝗶𝗼𝗻 📊 In balancing the portfolio, I leverage 𝗿𝗶𝘀𝗸 𝗱𝗶𝘃𝗲𝗿𝘀𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 principles and ensure a robust portfolio construction by focusing on how securities interact with each other and the broader market. This approach prioritizes 𝘀𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗮𝗻𝗱 𝗽𝗿𝗲𝗱𝗶𝗰𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 and aims to enhance risk adjusted returns, which when measured on my portfolio, actually score very highly. I also place a big importance on minimising calculable risk. This is reflected through my weighting strategy which considers inter-portfolio correlations, but I also consider cross-industry diversification and international diversification by investing a minority in non-US ETFs and a small portion in crypto-currency. This quantitative approach provides me with a model portfolio; However, I still filter and adjust based on my expectations with regards to 𝗺𝗮𝗰𝗿𝗼-𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝘁𝗿𝗲𝗻𝗱𝘀, 𝗳𝗶𝘀𝗰𝗮𝗹 𝗮𝗻𝗱 𝗺𝗼𝗻𝗲𝘁𝗮𝗿𝘆 𝗽𝗼𝗹𝗶𝗰𝗶𝗲𝘀 𝗮𝗻𝗱 𝘃𝗮𝗹𝘂𝗲 𝗷𝘂𝗱𝗴𝗺𝗲𝗻𝘁𝘀 on general market risk and the fundamental quality and prospects of the underlying businesses that I invest in. Not everything can be factored into equations, and this keeps all bases covered. The quantitative approach provides an efficient base from which I adjust. I draw from my 8 years of investing and 3 years as a popular investor. I’ve studied Investment, financial risk management and technology to a master’s degree and specialised in asset management, security analysis and portfolio construction. I constantly monitor financial news and macroeconomic data adjust the portfolio risk base on my research. I also post regularly to provide education and a clearer understanding of investing; I will always have the time for any questions or curiosities from followers! 𝗚𝗼𝗮𝗹𝘀 𝗮𝗻𝗱 𝗥𝗲𝗰𝗼𝗿𝗱 📈 My aim is also to keep the portfolio less risky than investing in, whilst outperforming the, SP500 Index, a price index representing aggregate market performance in the US stock market (my main area). This risk is measured by volatility, correlation to the rest of the market, and downside risk (drawdown). Over the past 3 years I have produced 𝟰𝟵.𝟳𝟱%, 𝗰𝗼𝗺𝗽𝗮𝗿𝗲𝗱 𝘁𝗼 𝘁𝗵𝗲 𝗦𝗣𝟱𝟬𝟬 𝘄𝗵𝗶𝗰𝗵 𝗿𝗲𝘁𝘂𝗿𝗻𝗲𝗱 𝟮𝟵.𝟵𝟬%.. you can see the year-by-year breakdown in my stats. Outperformance is great, but I think the fact that in 𝟮𝟬𝟮𝟮 𝗺𝗮𝗿𝗸𝗲𝘁 𝗳𝗲𝗹𝗹 𝟮𝟬%, 𝗜 𝗼𝗻𝗹𝘆 𝗹𝗼𝘀𝘁 𝟴% is the biggest testament to robustness of the strategy, and its risk-conscious approach, and I believe that protecting from losses is just as important as making gains. This portfolio is ideal for people looking to invest for at-least 3 years, and who are comfortable with basic volatility and are looking for their savings to grow in safe hands. I personally invest nearly all of my savings into this portfolio, and I am now responsible for nearly $1 Million AUM from etoro copy investors. So I treat this account with the upmost care and attention to detail as I can. I research, analyse and work on this portfolio nearly every day, so you don’t have to. As I said before, I always have to time for questions, curiosities, or any general thoughts from followers, so don’t hesitate to comment! $SPX500 $BTC $NSDQ100

Not investment advice. The author may have financial interests in the mentioned instruments.