The key risk-on and off drivers today are the same – U.S. politics, global growth, other centr...
Janjigian's Growth Picks
11/08/2002 12:00 am EST
Forbes Growth Investor relies on a proprietary quantitative computer model that ranks stocks based on some 70 variables. When backtested, the model outperformed the S&P 500 by 362% over a ten-year period. A team of growth stock analysts, led by Vahan Janjigian, then provide fundamental analysis on the top-ranked issues, to isolate the best 50 stocks and help investors build well-diversified equity portfolios.
“How do you use quantitative analysis? One of the main things we are trying to do with our Growth Investor newsletter is not simply to identify the growth stocks that are expected to do the best, but in addition, take diversification into account. We are looking to find the best stocks that are expected to grow within each of eight different sectors. We start off with a quantitative model that has about 72 variables in it and these variables have been constantly back-tested to identify the variables that seem to be the best in predicting future stock price performance. So in addition to growth, we are also trying to capture momentum and quantify that momentum. Now ‘momentum’ may be a dirty word these days, but there is a lot of academic research that shows that momentum investing works, and that stocks tends to have positive or negative momentum that lasts for periods of up to 12 months. So if you can identify that momentum and act on it, you can do pretty well.
“What are our current favorite stocks? Although we stress the importance of a fully-diversified portfolio, we currently like Gymboree (
“Another company I’d like to mention, which is a real contrarian play, is Xerox (
Editor's Note: All excerpts from the Forbes editors in this issue of The Money Show Digest are from a panel discussion held at the New York Money Show on Friday, October 25th. Quoted stock performance, portfolio performance, etc., have not been updated to reflect changes in the market since that date.
For information on the Forbes group of newsletters, visit www.forbes.com/newsletters.
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