Navellier’s portfolios are style-pure and employ a disciplined investment process. We’ve designed our equity-management program to achieve the highest possible returns with controlled risk. Using a comprehensive quantitative and fundamental screening process, we attempt to find and exploit inefficiencies in the market.
Since 1987, we have worked to identify growth stocks that significantly outperform the overall market over a full market cycle using our disciplined, quantitative investment process. With our state-of-the-art research techniques, we are able to continually adapt to the constant changes on Wall Street.
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 our proprietary screening process. 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 attempt to efficiently allocate stocks and create portfolios that are well diversified across sectors and industries. This efficiently allocates the stocks and creates portfolios that are well diversified across sectors and industries.
Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested.