Using Quantitative Strategies to Pick Winning Mid-Cap Stocks
by Charles Rotblut, CFA and Brian Peery
Brian Peery is a co-portfolio manager for Hennessy Funds, and co-manages the Hennessy Focus 30 fund (HFTFX). I spoke with him about incorporating stocks screens into the portfolio management process.
—Charles Rotblut
Share this article
Facebook
Twitter
E-mail
SeekingAlpha
Stumbleupon
Delicious
LinkedIn
Charles Rotblut (CR): You are using a quantitative strategy to identify stocks for the Hennessy Focus 30 fund (HFTFX), correct?
Brian Peery (BP): Correct.
We use the Compustat database, which is composed of roughly 10,000 public companies. Our whole goal is to design model portfolios that will outperform the relative benchmark. We want to accomplish that by taking a lower-risk profile, so the model has to outperform the benchmarks, but with lower risk. The one that we designed and implemented for mid caps is our Focus 30 fund.
To read more, please become an AAII Registered User or CLICK HERE.
Brian Peery is a co-portfolio manager for Hennessy Funds and co-manages the Focus 30 Fund (HFTFX).
Discussion
Appears that the individual investor can not purchase a stock and is to leave it to experts.???
posted 6 months ago by Ralph Rice from New Jersey
Mr. Peery’s second sentence is, “Our whole goal is to design model portfolios that will outperform the relative benchmark.”
Now, does this mean that if I were to invest my money in his fund and the “relative benchmark” dropped 25% and my funds dropped only 20%, I should be happy?
posted 6 months ago by James Grant from Ohio
to Ralf Rice
1)the individual investor has not to report her/his performance exactly on the 1 of January
2)he/she may adopt Short positions as well as a Long one.
3)he/she may use options and single stock futures both long and short to enhance performance.
And finally and most important,the individual investor should get fan of investing and education.Otherwise he/she have to leave it to experts.
posted 6 months ago by Aleksander Beljavskij from Illinois
Interesting article. What I find so incredible about the article is the funds performance vs the expense ratio.
It seems to me the longer you hold the fund the worse your performance becomes. Sort of a buy high and sell low attitude.
While I have not owned a mutual fund for almost 30 years, it seems obvious to me that Mr. Peery and the Hennessy Fund need a new stock screener, something an expense ratio of 1.36% should be able to cover without a second thought.
Wax
posted 6 months ago by Scott Wachsler from Texas
