Strategy
Investing
Australia

Rivkin High Conviction Portfolio

20 Nov 2020
By
The premise of the High Conviction 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).

Latest Update

The below table shows the Rivkin High Conviction Portfolio stocks.

Please note that 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.

Minimum Investment Amount and Period

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Period

Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. Richard McClintock, a Latin professor at Hampden-Sydney College in Virginia, looked up one of the more obscure Latin words, consectetur, from a Lorem Ipsum passage, and going through the cites of the word in classical literature, discovered the undoubtable source. Lorem Ipsum comes from sections 1.10.32 and 1.10.33 of "de Finibus Bonorum et Malorum" (The Extremes of Good and Evil) by Cicero, written in 45 BC. This book is a treatise on the theory of ethics, very popular during the Renaissance. The first line of Lorem Ipsum, "Lorem ipsum dolor sit amet..", comes from a line in section 1.10.32.

Stock codeStock nameSectorCurrent priceReturn 12mMom rank
NVDA
NVIDIA Corp
Information Technology
$549.46214.71%
1
AMD
Advanced Micro Devices Inc
Information Technology
$84.48199.75%
2
DXCM
DexCom Inc
Health Care
$374.89177.95%
3
ETSY
Etsy Inc
Consumer Discretionary
$134.56144.28%
4
AAPL
Apple Inc
Information Technology
$113.16113.35%
5
REGN
Regeneron Pharmaceuticals Inc
Health Care
$581.64107.25%
6
SWKS
Skyworks Solutions Inc
Information Technology
$147.27101.64%
7
WST
West Pharmaceutical Services I
Health Care
$290.33100.43%
8
NOW
ServiceNow Inc
Information Technology
$491.5499.52%
9
PYPL
PayPal Holdings Inc
Information Technology
$191.6697.47%
10
NFLX
Netflix Inc
Communication Services
$505.8796.81%
11
QRVO
Qorvo Inc
Information Technology
$131.0889.28%
12
AMZN
Amazon.com Inc
Consumer Discretionary
$3,099.9688.02%
13
ADBE
Adobe Inc
Information Technology
$478.9887.32%
14
CTLT
Catalent Inc
Health Care
$88.8583.45%
15

*Quantities are based on investing $5,000 (AUD or USD) per stock on the entry date
**All dollar values for US stocks are in US dollars unless it says otherwise, and therefore returns are calculated as a US dollar return. Depending on whether or not you use hedging to manage your currency, exposure will determine whether you need to adjust returns to account for exchange rate effects.

“!” indicated these stocks have a higher risk profile than other stocks in this portfolio.  While investing in high risk stocks it is crucial to be aware of your capital allocation.  For most investors investing more than 1-2% of their investment capital to such stocks would result a highly volatile investment portfolio.

Rivkin High Conviction Portfolio

MethodDiscretionary
GoalBalanced
MarketASX & US
RiskMedium
RebalanceDiscretionary
HorizonMulti-year
Minimum Suggested Investment$2000 per stock (model uses $5,000)

 

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 a minimum of $40K to $50K. The 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 been fully invested and can hold less than 15 stocks at times.

Within the portfolio stocks are predominately selected based on market capitalisation from both markets, meaning from the ASX200 in Australia, and the Nasdaq100 and S&P100 in the US. However, 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 stock selection process begins with a quantitative screen, whereby we shortlist companies based on both attractive fundamentals, not unlike those used in our Quality strategies, as well as Momentum factors. From this shortlist, 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; in other words, 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.

How To Follow this Portfolio

Rivkin’s portfolios are designed to be as easy as possible for investors to follow. To follow the Rivkin High Conviction Portfolio, investors need to buy the securities in the above table. 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 either AUD or USD depending on the market. To get the Australian dollar value to invest in US shares, the current exchange rate should be applied.

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 have any questions, please contact us at [email protected]

Important notice

Quantities and calculations mentioned in this post use the Rivkin Model and might differ from yours. This post does not constitute an invitation to buy or sell any securities. Before conducting any transaction, make sure you fully understand the terms of the product and the relevant risk factors involved. You can seek professional advice to determine the appropriateness and cost of any transaction from the broker you use.

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