Portfolio Strategies: Tactical Select
Portfolio Strategies
SAM Tactical Select
What is Tactical Select?
The Tactical Select strategy offered by Stansberry Asset Management, LLC (“SAM”) combines qualitative judgment with quantitative risk management to achieve growth, capital preservation, and income generation.
This strategy draws on ideas from across all SAM portfolios. Thus, it blends together three investment objectives: growth, capital preservation, and income generation. SAM actively manages the portfolio to ensure appropriate diversification is met through asset allocation and position sizing. Subject to market conditions, we anticipate the strategy will typically hold around 40 positions.
An additional layer of risk management is implemented by using TradeSmith’s™ suite of portfolio management tools, including their flagship products TradeStops and the Volatility Quotient (VQ). TradeSmith™ seeks to provide hedge fund-level insights powered by sophisticated risk-based algorithms that optimize the investment process.
The Best of Both Worlds
Tactical Select is an optimized blend of SAM’s fundamental, qualitative approach and TradeSmith’s™ proprietary quantitative system.
Only investments that meet our fundamental criteria and stand up to rigorous testing via TradeSmith’s™ suite of tools are selected for this strategy.
We will continue to update the portfolio as we source new investment ideas that are optimal candidates for Tactical Select. We will also diligently monitor TradeSmith’s™ risk metrics and will exit positions that no longer satisfy our strict scoring criteria.
The degree to which we are invested is guided by TradeSmith’s™ assessment of market conditions. We expect to be less invested during unfavorable times. Conversely, we’ll look to be more fully invested when TradeSmith™ has identified that conditions are ripe.
Top 10 Holdings as of 9/30/2023
| HOLDING | TICKER | WEIGHTING |
|---|---|---|
| US Dollars | — | 5.22% |
| Novo Nordisk ADR | NVO | 2.92% |
| The Vita CoCo Company | COCO | 2.85% |
| CBOE Global Markets | CBOE | 2.83% |
| Comfort Systems USA | FIX | 2.78% |
| Simpson Manufacturing | SSD | 2.76% |
| Parker-Hannifin | PH | 2.74% |
| Bean Roofing Supply | BECN | 2.68% |
| Meta Platforms Inc | META | 2.44% |
| Berkshire Hathaway Inc Class B | BRKB | 2.43% |
Tactical Select… powered by TradeSmith™
Company Analysis
- Balance Sheet Health
- Earnings Growth
- Management & Governance
- Capital Efficiency
- Valuation
Industry Analysis
- Competitive Position
- Regulation
- Market Structure
- Disruption Susceptibility
- Bargaining Power
Quantitative Analysis
- Health
- Trend
- Sector & Style Strength
- Timing
- Relative Strength
Macroeconomic Analysis
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- Economic Growth
- Interest Rates
- Labor
- Trade
- Inflation