NorthCoast CAN SLIM Investment Strategy

Transcription

1 NorthCoast CAN SLIM Investment Strategy A growth portfolio with downside risk protection NorthCoast CAN SLIM now available on Morgan Stanley s UMA platform This presentation is to report on the investment strategies as reported by NorthCoast Asset Management and is for illustrative purposes only. The information contained herein is obtained from multiple sources and believed to be reliable. Information has not been verified by Morgan Stanley Wealth Management and may differ from documents created by Morgan Stanley Wealth Management. You can obtain a copy of the Morgan Stanley Wealth Management Profile from the Morgan Stanley Wealth Management Performance Analytics. For additional information on other programs, please speak to Alex Dempster (adempster@northcoastam.com) at (203) For Presentation to Morgan Stanley Wealth Management Financial Advisors Fall 2018

2 30+ years of firm-level investment management experience $1.8+ billion dollars in assets under management/ advisory 20+ unique investment offerings to meet the needs and objectives of investors from income to growth and alternative opportunities 30+ member professional team 7 member portfolio management team with an institutional skill set in global tactical asset allocation and security selection 15 licensed investment advisors Firm overview as of 6/30/2018 2

3 NorthCoast partners with top institutions to deliver industry leading services NorthCoast CAN SLIM available at Morgan Stanley since Approved on CES platform in 2014 and now available on singlecontract UMA platform. 13-year partnership as the investment arm for one of the country s most distributed weekly financial publications. Utilizing the world s largest provider of Exchange-Traded Funds (ETFs) to construct and manage investment portfolios. ishares and BlackRock are registered trademarks of BlackRock, Inc. and its affiliates ( BlackRock ) and are used under license. BlackRock makes no representations or warranties regarding the advisability of investing in any product or service offered by NorthCoast Asset Management LLC. BlackRock has no obligation or liability in connection with the operation, marketing, trading or sale of any product or service offered by NorthCoast Asset Management LLC. 3

4 NorthCoast CAN SLIM Celebrating a 14-year partnership with Investor s Business Daily Unique The only separately-managed-account to use the time-tested CAN SLIM investment system, developed by William O Neill, founder of Investor s Business Daily. Systematic Applies a daily three-step investment process that seeks to participate in growth markets and preserve capital when bear market risk is high. Defensive The portfolio can shift to 100% cash in bear market environments. Complementary Utilized as a tactical sleeve or a growth supplement, CAN SLIM is designed to complement an existing strategic allocation. Proactive Markets do not always move up. The portfolio s daily management seeks to adapt to the ever-changing market environment. 4

5 Portfolio Construction A methodical alternative to passive buy-and-hold growth strategies Equity Ability to shift between 0% - 100% equity exposure, based on market environment 0% 100% Cash Proprietary scoring model with a universe of 3,000+ stocks filtered by CAN SLIM attributes and enhanced metrics 3,000 stocks scored daily NorthCoast Stock Score Holds between 0 40 Individual Stocks, targeting a 2% - 4% position weighting 4% 2%

6 By The Numbers Maximize the upside. Minimize the downside. Performance results from 1/1/2007 6/30/2018 Past Performance is not indicative of future results. All investments involve risk, including loss of principal. Returns are presented net-of-fees. Net-of-fee returns are calculated by subtracting the highest applicable SMA fee (0.65% on an annual basis, or 0.054% monthly) on a monthly basis from the gross composite monthly return. Please reference additional important disclosure & benchmark information at the end of this document. Data sourced from Bloomberg, NorthCoast Asset Management. 6

7 10+ years of participating in market growth with downside protection Year-by-Year Returns YTD Cumulative Returns Total Return Growth of $100,000* NorthCoast CAN SLIM $233,500 Tactical Competitor Avg $141,235 Aggressive Competitor Avg $176,785 S&P 500 Index $227,446 Annualized Return (Net %) RiskMetrics (since inception vs S&P 500) 1-Yr 3-Yr 5-Yr 10-Yr Since Inception (1/1/2007) Beta R2 Standard Deviation Correlation Maximum Drawdown NorthCoast CAN SLIM % 10.2% % Tactical Competitor Avg % 8.8% % Aggressive Competitor Avg % 12.6% % S&P 500 Index % % Performance results from 1/1/2007 6/30/2018. *Growth of $100,000 is hypothetical and shown for illustrative purposes. Past Performance is not indicative of future results. All investments involve risk, including loss of principal. Returns are presented net-of-fees. Net-of-fee returns are calculated by subtracting the highest applicable SMA fee (0.65% on an annual basis, or 0.054% monthly) on a monthly basis from the gross composite monthly return. Please reference additional important disclosure & benchmark information at the end of this document. Data sourced from Bloomberg, NorthCoast Asset Management. 7

8 Position CAN SLIM into a client s portfolio Complement a portfolio with CAN SLIM as the tactical/satellite piece Diversify. Can offer low correlation to standard asset classes and strategic allocations Defend. Ability to shift to 100% cash equivalents when bear market risk is high Differentiate. A unique solution that can offer clients market participation with downside risk protection Allocation is for educational & illustrative purposes only is not a recommendation to allocate a portfolio in this manner. 8

9 Past Performance does not guarantee or indicate future results. Investing entails risks, including possible loss of some or all of the investor s principal. NorthCoast Asset Management LLC claims compliance with the Global Investment Performance Standards (GIPS ) and has prepared and presented this report in compliance with the GIPS standards. NorthCoast Asset Management LLC has been independently verified for the periods August 1, 2006 through December 31, The firm is defined as NorthCoast Asset Management LLC ( NorthCoast ). NorthCoast was established in 1988 and is an independent Registered Investment Advisor (RIA) registered with the Securities and Exchange Commission (SEC). The firm is a full service investment management company. The firm specializes in quantitative investment programs. NorthCoast is located in Greenwich, CT, and is not affiliated with any parent organization and has no other offices operating under the same brand name. The CAN SLIM investment program is a tactical, long-term growth strategy focused on capital appreciation with a secondary objective of downside protection. The strategy invests in leading growth stocks during favorable equity environments and scales to cash to preserve gains when bear market risk is high. The strategy adheres to a flexible investment mandate that allows for allocation shifts that range between 0%-100% exposure to equities. Positions are managed (purchased and liquidated) through a combination of CAN SLIM guidelines and a proprietary stock scoring system designed to build a comprehensive growth portfolio. Returns are presented net-of-fees. Net-of-fee returns are calculated by subtracting the highest applicable SMA fee (0.65% on an annual basis, or 0.054% monthly) on a monthly basis from the gross composite monthly return. The composite contained 5% or fewer non fee paying accounts at the end of each year. If any account makes an addition >/= 20% of the overall account value on the day prior to the addition, the account is removed from the composite for the month. The account is then treated as a new account. No changes are made for withdrawals. Valuations are computed and performance is reported in U.S. dollars. A complete list of composite descriptions is available upon request. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. The composite was created in December 2009.To obtain a compliant presentation for the associated strategy, please contact one of our advisors at Aggressive Competitor Avg = Morningstar Allocation--70% to 85% Equity Category Average. Funds in allocation categories seek to provide both income and capital appreciation by investing in multiple asset classes, including stocks, bonds, and cash. These portfolios are dominated by domestic holdings and have equity exposures between 70% and 85%. Tactical Competitor Avg = Morningstar Tactical Allocation Category Average. Tactical Allocation portfolios seek to provide capital appreciation and income by actively shifting allocations between asset classes. These portfolios have material shifts across equity regions and bond sectors on a frequent basis. To qualify for the Tactical Allocation category, the fund must first meet the requirements to be considered in an allocation category. Next, the fund must historically demonstrate material shifts within the primary asset classes either through a gradual shift over three years or through a series of material shifts on a quarterly basis. The cumulative asset class exposure changes must exceed 10% over the measurement period. The S&P 500 Index is used for comparison purposes as it represents a sample of the 500 leading companies in leading industries of the U.S. economy. It is generally considered a proxy for the total market. The information contained herein has been prepared by NorthCoast Asset Management LLC on the basis of publicly available information, internally developed data and other third party sources believed to be reliable. This material is for informational and illustrative purposes only and is intended solely for the information of those to whom it is distributed by NorthCoast. No part of this material may be reproduced or retransmitted in any manner without the prior written permission of NorthCoast. NorthCoast does not represent, warrant or guarantee that this information is suitable for any investment purpose and it should not be used as a basis for investment decisions. This material should not be viewed as a current or past recommendation or a solicitation of an offer to buy or sell any securities or investment products or to adopt any investment strategy. The reader should not assume that any investments in companies, securities, sectors, strategies and/or markets identified or described herein were or will be profitable and no representation is made that any investor will or is likely to achieve results comparable to those shown or will make any profit or will be able to avoid incurring substantial losses. Performance differences for certain investors may occur due to various factors, including timing of investment. Investment return will fluctuate and may be volatile, especially over short time horizons. 9

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