A Smarter Approach to U.S. Equity Investing

Strategy Overview

Our approach targets large and mid-cap U.S. companies, building a diversified, equal-weighted portfolio across sectors and constituents. Unlike passive index strategies that mirror the market regardless of valuation or momentum, our strategy actively selects stocks that we believe, offer a compelling balance of relative value and positive price trends, within each sector.

At the heart of our process is a proprietary scoring mechanism, developed through extensive in-house quantitative research. This system enables us to evaluate companies based on multiple dimensions of valuation and momentum, helping us surface opportunities where market pricing may not fully reflect underlying strength.

The selection process is entirely systematic, relying on a transparent ruleset designed to ensure consistency, repeatability, and removal of behavioral biases. Our algorithm applies consistent logic across the investable universe — the human role is to monitor and refine the process, not to override it.

What Makes  This Strategy Distinct?

Sector and Position Diversification

We seek to allocate capital evenly across sectors and individual securities with the goal of reducing concentration risk. This approach is designed to help limit reliance on any single sector or stock for portfolio performance. Historically, in periods where a specific sector has underperformed (such as financials during the global financial crisis or technology stocks during the dot-com downturn), sector-equal weighted portfolios have shown a tendency to be less affected than market-cap weighted ones. While results will vary with market conditions, this type of structural balance may help provide broader diversification during periods of market stress. In addition, diversification across sectors and securities may help mitigate idiosyncratic risk associated with individual companies or sectors, though it cannot eliminate broader market risk.

Historical Returns

For our analysis, we recreated (for back-testing purposes) the market-cap weighted, equal weighted & sector-equal weighted versions of the Russell 1000 index, rebalanced annually (i.e., the indexes were constructed using internally coded methodologies, rebalanced annually based on predefined rules, and are not sourced from any commercial index provider).

As we can see, the Sector equal weighted version has outperformed both the equal weighted & market-cap weighted versions in 13 of the last 15 years.

Value + Momentum, Together

We focus on stocks that are relatively cheaper within their sectors but also exhibit strong momentum —a historically underappreciated combination that can help avoid value traps while still capturing upside trends.

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Active, But Thoughtful

The strategy is low-frequency by design, typically trading on a weekly basis. This allows us to remain responsive to market shifts while avoiding the noise of high-turnover trading — and helps reduce overall trading costs that can erode returns over time.

Designed to Outperform

While we don’t rely on backtested or simulated performance to promote this strategy, our internal research and scenario analysis give us strong conviction. This is not a “black box”. It's a transparent, rules-based framework built with careful consideration, continuous monitoring, and rigorous discipline — all aimed at outperforming broad U.S. equity benchmarks over time.

Strategy Comparison Table

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Who Is This Strategy For?

This strategy may be a good fit for investors who:-

• Prefer individual stock ownership over pooled vehicles like ETFs or mutual funds
• Appreciate active management rooted in research and rules-based decision-making
• Are comfortable with portfolio adjustments on a weekly basis, including potentially higher short-term capital gains in taxable accounts
• Seek strategies suitable for retirement or tax-advantaged accounts, where frequent trading does not trigger tax consequences
• Want diversified exposure to U.S. equities, while benefiting from disciplined stock selection that emphasizes both valuation and momentum