Top Stocks Insider Buying Strategy
The Top Stocks Insider Buying Strategy is a discretionary, aggressive growth oriented equity model utilizing individual stocks.
The strategy focuses on companies where the corporate executives who know their companies best are buying heavily. According to securities regulations, those executives who are privy to important company information are required to notify the government when they buy shares in their company’s stock. Thus, the management strategy of the “Insider Buying” program is to focus on those companies where corporate insiders are buying – and buying heavily.
Every week we scour the available research on "insider" buying and then create an insider score for each and every stock. Then, in keeping with our overall goal to "own the best and ignore the rest," we create a list of all the stocks with the highest insider scores. From there, our management team reviews each of the top rated stocks on an individual basis. We review the charts from a technical perspective. We review our proprietary rating for Earnings Strength. And we check our long-term fundamental models. The goal is to identify the top rated stocks where corporate insiders are buying - and buying heavily.
In an attempt to manage risk during severe market declines, the strategy 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 20
Although the aggressive approach used for the Top Stocks Insider Buying model has the potential to generate robust returns during a positive market environment, investing in equities does incorporate higher risk of principal loss than a buy and hold approach. The model is aggressive in nature and as such, it may experience periods of large fluctuation in account value. Program Details
Below is a summary of some of the logistical details of the Top 25 program:
- Positions are equal weighted (approx 5% each)
- Insider Ratings are recalculated weekly
- Portfolio is reviewed weekly
- Risk Management assessments are performed daily
- Client Assets are held at Trust Company of America (TCA)
- Clients have online access to their accounts 24/7/365 via TCA's website
- Tax accounting summary provided by TCA each year
- Minimum Account Size: $25,000
