Our Strategy
STELLAR ASSETS
Regression Modeling
Combining Value, Momentum, & Risk Management
We constantly analyze over 3000 stocks to find those that can thrive in a variety of market conditions. We then rank each stock based on a variety of market conditions, including:
1. Value: Market capitalization of each company is compared to predicted value based on sales, growth, smoothed profit margins, and a discount rate appropriate based on company characteristics
2. Risk-off: We use regression analytics and the most recent major market declines to model potential losses, by stock, during any future potential sell-off.
3. Momentum: Similar to Risk-off modeling, we use recent market gains to identify factors most closely associated with individual stock outperformance… should positive market momentum continue.
OUR Philosophy
Prudent Risk Taking
At Stellar Assets, we believe in prudent risk-taking on undervalued companies. We always try to buy low and sell high, which in practice often means taking positions in companies which Wall Street has shunned. These appear to be fundamentally sound companies, but recent negative price action has forced the Wall Street fashion show in another direction. We can be patient. We often acquire more when others abandon ship as perception and related job preservation force the last remaining analysts to reluctantly issue their sell orders. Please see Our Approach for more details or contact an investment professional.
