The IntelliBuilD® Growth strategy is a fully invested portfolio of 33 stocks from Investor’s Business Daily’s IBD 50 or New America lists. Sheaff Brock takes a disciplined approach with the overall portfolio management, seeking a portfolio of individual stocks designed for moderate aggressive growth, and focused on capital appreciation from fundamentally strong American growth-oriented equities. The strategy follows a quantitative methodology while utilizing institutional level research coupled with computerized modeling for buy and sell investment decisions.
The primary objective of the Sheaff Brock IntelliBuilD Growth portfolio strategy is capital appreciation.
The strategy holds US companies that are on the Investor’s Business Daily IBD 50 and The New America list that offer strong fundamentals and attractive relative strength.
INVESTMENT METHODOLOGY & PORTFOLIO CONSTRUCT
The investment decision process includes three distinct steps to determine value:
First IBD composite rating: Sheaff Brock applies a fundamental approach, and looks for an overall score of the stock by composing all other IBD SmartSelect Ratings into one, with more weight on the Earnings per Share and Relative Strength ratings. The rating can range from 1 (worst) to 99 (best) of all stocks in terms of overall fundamental and technical strength. Generally, stocks with a score of 95 or higher become a potential buy candidate.
Second Relative Strength Indicator (RSI): Sheaff Brock applies technical analysis to identify those stocks that are demonstrating relative outperformance over the past 52 weeks. Sheaff Brock will consider a stock purchase when the RSI is 85 or above, and consider a stock sale when the RSI is below 70.
Third Downside risk: Sheaff Brock applies fundamental institutional research and analysis that identifies and ranks stocks according to their predicted downside risk over the next 3–24 months. Sheaff Brock considers those stocks that rank in the top 3 deciles.
The outcome from the Sheaff Brock investment methodology produces a “score” based on the comprehensive analysis and research (3 distinct disciplines) for each stock in consideration that is then ranked and reviewed by the Sheaff Brock Investment Committee for buy/sell decisions.