The HedgePro Portfolio is a trading strategy designed to utlilize multiple management strategies and then allow our managers the freecom to apply the appropriate approach for each market environment.
How the HedgePro Portfolio Works
In short, the HedgePro Portfolio is designed to own "what's working now."
In today’s market, it’s not enough to stick to one strategy. Since Mid-November, we have shifted gears in the HedgePro Portfolio away from a traditional long / short split portfolio, to a more diversified “strategy of strategies”. Sure, one strategy may work for a while. For example, “buy and hold” was believed to be ultimately the best strategy until this past decade. The bursting of the tech bubble and the financial crisis in 2008 made it abundantly clear that this strategy was far from failsafe. Other strategies, such as market timing, can work well in certain environments with more drawn out, established trends. However, volatile environments like we had in the summer of 2010 made market timing an absolute nightmare.
The point is, by utilizing different strategies throughout the portfolio, we can focus on what is working, and back away from what is not working.
The first two strategies, “Seasonal Trend” and “Historical Trend” are exactly what they sound like. We have identified the top performing sectors and asset classes in each month and allocated a portion of the portfolio to each category. The thinking is that by holding what has worked in the past, we have a better chance of outperforming moving forward.
The “Market Timing” strategy represents 20% of the portfolio, and is designed to capture the up and down trends of the market. This portion can be either long, short, or in cash at any time.
Next up is our “Insider Strategy”, which makes up an additional 20% of the portfolio allocation. Basically we are stealing the strategy of SotM’s Insiders Portfolio and utilizing it in a few positions (only because it works so darned well!).
Last up is the “Trades” portion of the portfolio, which utilizes a 40% allocation on our best short, mid, and long-term trading ideas.
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Let's Talk HedgePro Performance
The HedgePro Portfolio brings together several powerful trading strategies. The proprietary stock selection system, market timing strategy, and the "go anywhere" ETF strategy. On a discretionary basis, our managers then select the appropriate strategy for each market environment.
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The returns shown for the HedgePro in 2009 and beyond are a hypothetical implementation of the portfolio strategy based on execution of real-time trade alerts. The return calculations for the HedgePro Portfolio prior to 2009 represent hypothetical system testing. Returns represent the combined and averaged results from the Top 5 portfolio and the Ursa Major Portfolio and do not represent actual trading. It should be noted that although the System Test was performed by an independent company, test results do not represent actual trading, do not take into account payment of commissions nor reinvestment of dividends, have inherent limitations, incorporates the benefit of hindsight in the development of the model, and are for informational purposes only. Past performance is not a guarantee of future results.
What You Receive:
Before anyone becomes a member of our service, we feel it is important for them to understand exactly what they will be getting from us. So here's a summary of the reports you will begin receiving once you've signed up for a free-trial:
- Company Name
- Ticker Symbol
- Limit Price
- Position Size
- The Reasoning Behind the Trade - We believe it is vital to understand the reason WHY a trade is being made
- Breaking News - Up to the minute market news
- Technical Talk - Stay on top of the key technical levels on the charts
- What's Driving Today's Market - The key story of the day
- The Big Picture Report - Stay in tune with major market cycles
- Daily Stock Pick - Our pick of the day
- Daily Focus List - The TopStocks we're watching today
- The 10.0 Report - The REAL "Best of Breed"
- The Risk Manager Report - Understand the Risk/Reward environment
- TSP Market Model Roundup - We quantify the current market
- The Insiders Report - What are the "insiders" buying?
- Daily Upgrade/Downgrade Report - Stay on top of stocks "in play"
- Earnings Scorecard - Who "beat the street" and who "missed?"
- The SOTM 100 - The HedgePro0 stocks (updated monthly)
- IRA/401(k) Portfolios - TSP Portfolios for your long-term assets
- Top Stories - Never miss an economic report or top story
Real-Time Trade Alerts - We send a real-time ALERT! via email BEFORE every trade we make. These live reports tell members EXACTLY what we are about to do and why we are doing it. And to avoid any conflicts, it is our policy to wait until after we have received the ALERT to actually enter our trades. Each ALERT! includes:
Weekly Round-Up - Every week we update members on trading activity, current holdings, and performance of our portfolio.
Daily State of the Markets - As a TopStockPortfolios.com member, you'll receive our "Daily State of the Markets" market analysis and commentary each morning BEFORE the opening bell.
All the SOTM Reports - In addition, you can choose to receive any or ALL of the following reports: (just click on the reports you'd like to receive in Your Account)
Let's Talk Price
The HedgePro Portfolio is a "pro level" hedged portfolio that can easily replace your brok-er recommendations and those mutual funds in your portfolio. In short, you can be your hedge fund manager for just $398.99 a year, which is less than $34 per month! (Monthly and quarterly plans are also available.)
Wishing you green screens in your investment endeavors,
Don Moenning
Portfolio Manager
The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of stateofthemarkets.com and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Stocks should always consult an investment professional before making any investment.
Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Do NOT ever purchase any security without doing sufficient research. There is no guarantee that the investment objectives outlined will actually come to pass. All opinions expressed herein are subject to change without notice. Neither the editor, employees, nor any of their affiliates shall have any liability for any loss sustained by anyone who has relied on the information provided.
The analysis provided is based on both technical and fundamental research and is provided “as is” without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.
The information contained in our websites and publications is provided by Ridge Publishing Co. Inc. (Ridge). One of the principals of Ridge, Mr. David Moenning, is also President and majority shareholder of Heritage Capital Management, Inc. (HCM) a Chicago-based money management firm. HCM is registered with the U.S. Securities and Exchange Commission as an investment adviser. HCM also serves as a sub-advisor to other investment advisory firms. Ridge is a publisher and has not registered as an investment adviser. Neither HCM nor Ridge is registered as a broker-dealer.
Employees and affiliates of HCM and Ridge may at times have positions in the securities referred to and may make purchases or sales of these securities while publications are in circulation. Editors will indicate whether they or HCM has a position in stocks or other securities mentioned in any publication. The disclosures will be accurate as of the time of publication and may change thereafter without notice.
Returns for the Hedgepro prior to 2008 are a hypothetical implementation of the portfolio strategy allocating equal portions of the portfolio to the TOP 5 positions. Returns for 1/1/2008 through 9/30/2008 are hypothetical implementation of trading alerts based on actual transactions made by the editor in other live portfolios and are before commission costs. The results after 9/30/08 are live trades in a TOP 5 portfolio account and includes payment commissions and account admin fees. Hypothetical returns do not reflect actual trading. Please note that hypothetical test results do not take into account market conditions which could adversely affect management decisions.
Return calculations for the Ursa Major are based on system testing for the time period displayed. Hypothetical returns do not reflect actual trading or the payment of commissions. Please note that hypothetical test results do not take into account market conditions which could adversely affect management decisions.
Index returns are price only and do not include the reinvestment of dividends. The S&P 500 is a stock market index containing the stocks of 500 large-cap corporations, most of which are US companies. The index is the most notable of the many indices owned and maintained by Standard & Poor's, a division of McGraw-Hill. S&P 500 is used in reference not only to the index but also to the 500 companies that have their common stock included in the index.
All live returns assume reinvestment of dividends. Investments in equities carry an inherent element of risk including the potential for significant loss of principal. Past performance is not an indication of future results.
