The CORE portfolio strategy

Our CORE portfolio strategy deserves an isolated discussion because it often gets overlooked, yet it attracts some of the biggest investors in the world.  Aggressive investors don't pay attention to it as they typically favor more aggressive strategies, and conservative investors lose sight of it because aggressive strategies tend to take the limelight away from less active strategies like the CORE portfolio strategy.

However, the CORE portfolio strategy that I offer in a do it yourself format at stock traders daily and that I manage at Equity Logic has teeth, it has an ability to mitigate risk in the face of any market environment, and it probably has a place in every portfolio, including those of the most conservative and the most aggressive investors on the market.  I have been approached by large pension funds, endowments, and sovereign wealth funds, investors who look for the qualities in characteristics of our CORE portfolio strategy.

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The characteristics of the strategy are solid performance with low volatility and little direct market exposure, and this is exactly what it has delivered, as you can see by the performance chart of the do it yourself version of the strategy on our homepage.

CORE Portfolio Strategy Performance:

  • Open the home page HOME PAGE
  • Look for the green box in the top main menu named CORE
  • Click that green box and a performance page will open.

If the performance page does not open directly there will be a link in the left hand menu to review performance.

What you will see is a chart that seems to have a 45° angle, straight up, but it's important to understand what has been going on behind the scenes because ultimately it is that activity which makes the strategy as powerful as it is.

To begin, during the first part of this year when the buying frenzy was in full force our CORE portfolio strategy was predominantly neutralized.  In fact, during that frenzy our CORE portfolio strategy was only exposed to the market for 40 hours, and the rest of the time it was neutralized, but still it had nice gains.

Since then the market has started to experience additional degrees of volatility, but we did not see that same volatility in our CORE portfolio strategy.  Instead, it protected money, just like it is designed to do.

However, through all of this, with a focus on protecting assets, our CORE portfolio strategy (look at the DIY version and include the current position) is still beating both the S&P 500 and the Dow Jones industrial average, with far less risk and while being neutralized almost always.

Looking at our more recent activity, we recently neutralized the portfolio when the S&P 500 was near 2378 and we removed the neutralization when the market was near 2333.

We recently protected assets by 1.7%, and as much as that goes unnoticed when compared to more aggressive strategies that have ranked 4th Worldwide and 5th Worldwide like some of the ones we share in DIY format have, the ability to protect money and still outperform the market is huge.

Our CORE portfolio strategy attracts big money, and it is where most of the money that I manage is invested, but it is also something that you can possibly do all by yourself because the strategy is not actively traded and the strategy is relatively straightforward and easy to understand.  Look carefully at the CORE portfolio strategy.

Please do not be blind to this CORE portfolio strategy simply because it is not active enough for you, or because other strategies distract you from it, because the CORE portfolio strategy may very well be all you need to protect assets and make money no matter what happens to this currently overvalued market in the years ahead.

Thank you.

Thomas H. Kee Jr.