Sheaff Brock Bulls of the Dow Portfolio Strategy

This strategy is designed for the growth-oriented investor, but also offers dividend income. The portfolio holds the ten stocks in the Dow Jones Industrial Average with the strongest research scores. Scores derived from 22 data points such as free cash-flow, earnings growth, leverage, volatility, analyst revisions, etc., focus first on avoiding downside risk, and also help evaluate upside potential.

Bulls of the Dow Strategy Overview

DESCRIPTION

The Bulls of The Dow strategy is a fully invested portfolio focused on 10 stocks of the Dow Jones Industrial Average. Sheaff Brock takes a disciplined approach with the overall portfolio management, seeking a portfolio of individual stocks in order to generate long term capital appreciation with a secondary objective of dividend income.

The primary objective of the Bulls of the Dow portfolio is twofold:

1. Identify and invest in stocks that offer the best opportunity to avoid downside risk
2. Identify and invest in stocks that have the opportunity to offer long term capital appreciation

The Sheaff Brock Bulls of the Dow portfolio is designed for growth, and the portfolio also seeks to offer income from dividends. The strategy invests in the top 10 stocks in the Dow Jones Industrial Average with the strongest fundamental scores and lowest downside risk attributes. The strategy is rebalanced on a quarterly basis with an emphasis on current rankings of the quantitative scores.

INVESTMENT METHODOLOGY & PORTFOLIO CONSTRUCT

Sheaff Brock Bulls of the Dow is a concentrated portfolio of 10 large capitalization stocks chosen from the Dow Jones Industrial Average based on a quantitative fundamental score. The score includes a comprehensive research and analysis that incorporates fundamental institutional research analysis in the determination of stock selection.

First An initial screen utilizes a fundamental value approach scoring each member of the Dow Jones Industrial Average on about 20 variables (e.g., free cash-flow, revenue stability, profitability changes and trend, leverage, stock price volatility and correlation, and earnings surprise persistency).

Second The data is used for analysis focused on downside risk; this measures the risk of a stock versus the potential return, with the goal being to avoid downside risk.

The outcome produces a “score” based on the comprehensive analysis and research for each stock in consideration that is then ranked and reviewed quarterly by the Sheaff Brock Investment Committee for buy/sell decisions.

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