Global Quant Favorites

08/12/2014 9:00 am EST

Focus: STRATEGIES

Jim Lowell

Senior Partner & Chief Investment Strategist, Adviser Investments

Our Global Quant portfolio is distinct by virtue of its proprietary methodology; we own the top ranked managers following a rules-based system. Our purely quantitative manager ranking system decides who is and is not included in our Global Quant portfolio, suggests Jim Lowell, editor of Fidelity Investor.

This portfolio is best suited for investors with a minimum time horizon of ten years and a risk tolerance that would fall between the Growth and Aggressive Growth portfolios.

This portfolio could also serve as a growth-oriented component of a more diversified moderate growth or growth and income portfolio. I would think this portfolio would be best placed in a tax-advantaged account such as an IRA. Let’s look at some of these funds.

Here’s a look at four of the managers/funds in our Global Quant Portfolio:

Focused Stock (FTQGX)

Manager Stephen DuFour invests in 30-80 stocks (currently 51 holdings) of companies from both the growth and value categories. It began trading in November 1996 and has a market value of close to $2 billion.

Foreign investments make up 3% of the holdings. The top three sectors are information technology (19.3%), industrials (15.8%), and healthcare (13%).

Independence (FDFFX)

Manager Robert Bertelson makes both growth and value, and domestic and foreign investments. The fund began trading in March 1983 and has a market value of over $4.7 billion.

Foreign investments make up 11.3% of the holdings. The top three sectors are consumer discretionary (23.3%), healthcare (20.9%), and information technology (14.4%).

Nordic (FNORX)

Manager Per Johansson invests in Danish, Finnish, Swedish, and Norwegian companies as well as those tied economically to those countries. It began trading in November 1995 and has a market value of $630 million.

The top five country representations are Sweden (40.2%), Denmark (36.6%), Finland (15.5%), UK (5.5%), and Norway (2.2%). The top three sectors are industrials (28.2%), financials (17.7%), and healthcare (16.9%).

Trend (FTRNX)

Manager Daniel Kelley selects investments using momentum and trend data of companies, sectors, and the overall market. It began trading in June 1958 and has a market value of $1.4 billion.

Foreign investments make up 6.5% of the holdings. The top three sectors are information technology (25.4%), consumer discretionary (18.7%), and healthcare (15.8%).

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