Louis Navellier has been dedicated to finding and exploiting inefficiencies in the market since 1980. Mr. Navellier believes that a disciplined quantitative and fundamental analysis system can discover stocks that will outperform the overall market over the long term.
For most of our products, we use a highly disciplined, "bottom up" stock-selection process:
- The first step employs quantitative analysis of market and individual stock statistics using a proprietary computer screen. This allows us to measure reward (alpha) and risk (standard deviation) indicators for the appropriate market capitalization range for each product. We then rank stocks on the reward/risk measure and reduce the initial investment universe to only those stocks in the upper percentiles of the reward/risk measure.
- In the second step, we apply fundamental variable screens to the stocks with the highest reward/risk measures. This process typically highlights stocks that are best characterized as companies with exceptional profit margins, excellent earnings growth, and reasonable price/earnings ratios (based on expected future earnings).
- In the third step, we use a proprietary optimization model to maximize portfolio alpha while minimizing portfolio standard deviation. We believe this efficiently allocates the stocks and creates portfolios that are well diversified across sectors and industries.
Navellier's dynamic, disciplined, quantitative approach is designed to build portfolios that significantly outperform the market over an investment horizon of at least five years while maintaining style consistency. However, there is no guarantee that any of the portfolios will outperform their respective benchmarks.
Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested.