Outlier Growth seeks capital appreciation of high-growth companies and is a diversified portfolio with a mixture of “blue chip” equities and some smaller, unfamiliar names. The newest growth strategy pursues equities that may have the potential to significantly outperform the market, stocks that could be called ‘outliers.’
Attempting to find these potential outliers by selecting companies early in a growth cycle, the portfolio uses MAPsignals to track equities with unusual spikes in buying volume. Composite scores from Investor’s Business Daily (IBD) are used to rate potential investments for strength of fundamentals and technicals. Then downside risk scores further screen the candidates. Buy and sell decisions are based on a proprietary quantitative score from all the research as well as growth expectations.
The Outlier Growth strategy seeks capital appreciation by attempting to identify stocks early in a growth cycle. These equities are viewed as candidates that could dramatically outperform the stock market, hence the name, ‘outliers.’
Sheaff Brock Outlier Growth uses a four-step process for screening and selection of stocks that may be early in a growth cycle.
1st | Universe MAPsignals weekly ranking of equities with unusual spikes in volume are used to identify where material institutional money may be directed.
2nd | Rate The Investor Business Daily’s composite rating is applied to score the strength of fundamentals and technicals of the identified volume-outlier stocks.
3rd | Screen Revelation Research is used to analyze downside risk based on valuation, growth, fundamentals, and sentiment.
4th | Decision Generate a proprietary quantitative score to guide buy and sell decisions. The quantitative nature of the portfolio may result in higher than typical turnover.
Sheaff Brock Outlier Growth seeks capital appreciation from exposure to U.S. growth companies which attract significant institutional interest.
The portfolio is actively managed using a systematic and disciplined approach which includes a focus on mitigating the downside risk of individual companies. Additionally, the portfolio offers diversification beyond typical ‘blue chip’ equity portfolios.