The Top Stocks – Top 10 model is a discretionary, concentrated, aggressive growth equity model focusing on individual stocks. During positive market environments, the model will own just one stock in each of the ten economic sectors. The objective is to maintain positions in one of the top rated stocks (as defined by HCM’s earnings strength and company performance rating system) in each sector. The Top 10 may hold significant cash positions during negative market environment. The model is monitored daily and reallocated on a weekly basis.

Alternative to:         Aggressive Growth Mutual Funds and Individual Stocks
Securities Used:     Individual Equities
Number of Stocks:  Approximately 10

Although the concentrated, aggressive approach employed by the Top Stocks – Top 10 has the potential to generate robust returns during positive market environments, investing in equities does incorporate risk of principal loss and utilizing a concentrated portfolio strategy increases these risk levels further. The model is aggressive growth oriented and as such, may experience periods of large fluctuation in account value. While the portfolio strategy may spread holdings evenly across all 10 Standard & Poors economic sectors, with only 1 holding in each sector, the portfolio is subject to increased concentration risk. Thus, the Top 10 model is not intended to be the sole strategy within a client’s portfolio.

Program Details
Below is a summary of some of the logistical details of the Top Stocks - Top 10 Program:

• Positions are equal weighted (approx 10% each)
  
• Top Stock Ratings are recalculated weekly
  
• Portfolio rebalanced weekly
  
• Risk Management assessments are performed daily
  
• Minimum Account Size: $25,000