The Equity-Growth model is a tactical growth investing strategy designed to identify and capitalize on high-growth companies that demonstrate strong profitability and robust free cash flow. By integrating both fundamental financial analysis and technical momentum indicators, this model aims to deliver superior risk-adjusted returns in dynamic market environments.
The Equity-Growth model serves as a high-growth satellite to a diversified portfolio. The model focuses its allocation to company stocks within cyclical sectors that demonstrating improving momentum. The goal of the model is to boost performance of a portfolio while providing lower volatility compared to similar allocations.
High-growth stock filter
We filter for stocks with high expected growth within cyclical sectors. We also put an emphasis on profitability and free cash flow.
Entry Point
We look to enter a new position when momentum is improving.
Final Allocation
The Equity – Growth Model serves as a dynamic growth allocation within a diversified portfolio. Designed for investors with a moderate-to-high risk tolerance, this strategy complements core holdings by targeting companies with exceptional earnings growth, strong profitability, and expanding free cash flow. The tactical use of momentum indicators ensures that capital is allocated to stocks exhibiting favorable price trends, thereby enhancing return potential and managing downside risk.
The Equity-Growth Model is suitable for investors with a moderate to high risk tolerance who seek to enhance their core portfolio.
The Equity-Growth Model acts as a satellite allocation designed to complement a diversified Core Portfolio.
The Equity-Growth Model involves high volatility securities and is concentrated to cyclical sectors. This model is one of our riskiest allocation.
Prefered in tax-advantaged accounts due to its higher turnover.
The Equity – Growth Model embodies a forward-thinking approach to equity investing by combining rigorous financial analysis with tactical momentum timing. In an era defined by innovation and rapid market shifts, this model offers a disciplined path to capitalize on high-growth opportunities while maintaining a strong focus on financial health and risk management.
With a curated portfolio of companies leading in technology, consumer evolution, and digital transformation, the model is well-positioned to deliver compelling returns across market cycles. Whether used as a standalone growth strategy or a high-octane satellite allocation, the Equity – Growth Model equips investors with a powerful tool to pursue capital appreciation through conviction-based, data-driven decisions.
