GI Alpha Focus Relative Strength Model

Growth Investing Alpha Focus Portfolio is a Discretionary, rules-based investment approach aiming for significant alpha by investing in the strongest stocks within top-performing sectors. Portfolio harnesses momentum by allocating capital to stocks and sectors showing robust recent performance, with adaptable risk management designed for all market environments.

Key Features

1. Relative Strength Focus: Screens for top-performing sectors using objective relative strength indicators; selects the highest-momentum stocks within these sectors.

1. Strict Risk Management: Employs disciplined sell rules—promptly exiting underperformers to limit drawdowns and holding winners while momentum lasts.
2. Alpha Generation: Pursues consistent, superior returns by riding sector and stock trends, without relying on market timing or predictions.
3. Dynamic Structure: Rebalancing keeps the portfolio aligned with current sector and stock leadership.
4. Systematic and Objective: Entry/exit decisions are based on quantitative, rules-based criteria, eliminating emotional biases.

Portfolio Construction

1. Maximum Number of Holdings: 10 stocks
2. Weighting: Equal allocation to each stock
3. Rebalancing: Need-based (based on latest sector and stock momentum analysis)

Market Condition Adaptation

1. Bearish Market Response: If overall market conditions are deemed bearish according to a predefined quantitative rule portfolio moves fully or partially to cash, preserve capital during broad market downturns.