Rivkin is excited to announce the introduction of a new portfolio which we have named the Rivkin High Conviction Portfolio. The premise of the portfolio is to put together a concentrated portfolio of high conviction stocks with the aim of a ‘buy and hold’ approach, meaning we envisage stocks to be held for the medium to long term (from six months to years).
The Rivkin High Conviction Portfolio will be limited in size to 15 stocks at any point in time. However, it is important to note that the portfolio does not have to be fully invested and can hold less than 15 stocks at times. We will have the ability to choose stocks from both the Australian and US stock markets, and will predominantly be selecting large-cap stocks from both markets, meaning from the ASX200 in Australia, and the Nasdaq100 and S&P100 in the US. Furthermore, if we believe there is a compelling company outside of these universes, which will inevitably have a smaller market capitalisation, it can also be included. The premise of the portfolio is to put together a concentrated portfolio of high conviction stocks with the aim of a ‘buy and hold’ approach, meaning we envisage stocks to be held for the medium to long term (from six months to years).
The stock selection process begins with a quantitative screen whereby we shortlist companies based on both attractive fundamentals and Momentum factors. From this list, all companies are given a fundamental score based on our discretionary view of the company, their industry, growth prospects, and competitive advantage. More so, each company is also scored based on a technical view and our discretionary view of the price chart. These scores are then combined to provide a final ranking of stocks from which a final selection is made. Unlike our current systematic strategies, buy and sell decisions will come on any day and may be triggered by either a technical or fundamental catalyst. As an example, a stock that we rate highly based on fundamentals may only be issued as a buy recommendation once the price breaks from a consolidation range and begins to trend. Another example could be a stock being sold based on a poor operational update.
The portfolio is aimed at investors who wish to hold stocks for the longer-term or those who have insufficient funds to follow our systematic portfolios which we believe require around 40K-50K. Unlike our systematic strategies that need to be followed in full, members can pick and choose stocks from the portfolio which appeal to them. However, members with larger capital amounts can also follow the portfolio in full. As a general guide, we recommend that members hold a minimum value in any one stock of $5,000.
It is important to note that stocks within the high conviction portfolio can overlap with our other systematic strategies. More so, if a stock is sold from a systematic portfolio, that will not automatically trigger a sell from the high conviction portfolio.
If you need any additional clarification, please email us at [email protected]
