Smallcap Returns

Description

Small caps above $200M trading at $1 or more. Names are ranked on model conviction among stocks at or above their analyst target and spread across up to 12 slots. There is no maximum hold: a position leaves when it falls out of the ranking or hits its 25% stop-loss.

Strategy

Equal capital is invested in every stock recommendation. Recommendations are published a few hours before the open, and each one is placed as a market order with a 25% stop-loss attached, so buys and sells fill at the opening price. If the price touches the stop during the day, the position is sold there, at 75% of its entry price. There is no maximum holding period: a position exits when it drops out of the ranking or when the stop is hit. Reported returns are measured from those opening prices and include every stop-loss exit.