Sheaff Brock Twenty Under Thirty-Five Portfolio Strategy

This strategy is designed for moderate aggressive growth, and is solely focused on capital growth from fundamentally strong American stocks. It utilizes a quantitative methodology which uses computerized screening for buy and sell decision making.

Twenty Under Thirty-Five Strategy Overview


The Twenty under Thirty-Five (35/20) strategy is a fully invested portfolio owning 20 stocks priced under $35 (at time of original purchase) from a universe of approximately 2,200 domestic companies trading on U.S. exchanges, seeking a portfolio of individual stocks to generate long-term capital appreciation. Dividend income is ancillary and not considered in the construction of the portfolio.


The strategy invests in the top 20 stocks of the approximately 2,200 domestic companies trading on U.S. exchanges with the lowest downside risk attributes (generally in the first decile) priced below $35 per share. The stocks are held until the downside risk score deteriorates into the fifth decile of all stocks, at which time the stock is replaced with a new stock priced below $35 and sporting the lowest downside risk score. The strategy is monitored weekly on current rankings of the quantitative scores. The investment decision process includes three distinct steps to determine value:

First An initial screen utilizes a quantitative value approach scoring each member trading below $35 per share 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 weekly by the Sheaff Brock Investment Committee for buy/sell decisions.If you'd like to learn more about the Sheaff Brock Twenty Under Thirty-Five portfolio strategy, This email address is being protected from spambots. You need JavaScript enabled to view it..

Please click here to review Sheaff Brock disclosures about the portfolio strategy information provided.