The Disciplined Investor Managed Growth (TDIMG) Strategy has several diversifying components within the portfolios that we manage. Central to the strategy are the core stock holdings that are derived from a rigorous quantitative screen.
This screening process starts with a universe of over 5,000 publicly traded companies and searches for very specific fundamental characteristics. Usually we find anywhere from 30 – 70 stocks that meet our criteria.
Recently we completed a screening and research process as we do on a regular basis. The result was a rotation of the portfolio, adding the new names that were generated and removing those that did not make the cut.
Not much change in capitalization for the portfolio can be seen recently. Perhaps a small increase in the mid-cap area.
Notice below that the industrial sector was reduced by the most as compare to our last rotation. Information tech was increased the most during this period.
Consumer staples and healthcare were also reduced while consumer discretionary and financials increased. The reason for these changes were primarily due to margins and EPS growth requirements.
Below is a look at how the core stock component of the TDIMG Strategy has changed during the recent rotation and the sector allocation.
This is an ongoing process that works with other portfolio dynamics to create the strategy. Take a look at the Virtual Tour for more information on how it all fits together.