Top Performing Stock Models

Guru Based on	Strategy Name	Number Of Stocks	Rebalancing	Annual Return	S&P 500	+/- S&P 500
Meb Faber	Shareholder Yield Investor	10	Quarterly	23.4%	14.0%	9.3%
Partha Mohanram	P/B Growth Investor	10	Tax Efficient	16.8%	8.0%	8.8%
Dashan Huang	Twin Momentum Investor	10	Monthly	22.3%	13.5%	8.8%
James O'Shaughnessy	Value Composite Investor	10	Tax Efficient	22.2%	13.5%	8.7%
Patrick O'Shaughnessy	Millennial Investor	10	Monthly	20.1%	13.5%	6.6%
Motley Fool	Small-Cap Growth Investor	10	Tax Efficient	14.9%	8.4%	6.5%
Wayne Thorp	Earnings Revision Investor	10	Monthly	18.5%	13.5%	5.0%
Benjamin Graham	Value Investor	10	Annual	12.8%	8.4%	4.5%
Martin Zweig	Growth Investor	20	Tax Efficient	12.6%	8.4%	4.2%
Validea	Momentum Investor	10	Monthly	12.5%	8.4%	4.1%

* Returns are model returns and do not reflect actual trading. Full performance disclaimer

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Top Performing ETF Models

Portfolio	Annual Return	Benchmark	+/- Benchmark	Beta	Standard Deviation	Maximum Drawdown	Sharpe Ratio
Factor Rotation - Momentum with Trend	14.2%	9.9%	4.3%	0.59	19.1%	34.7%	0.68
Factor Rotation - Composite with Trend	13.9%	9.9%	4.0%	0.58	18.9%	40.7%	0.66
Factor Rotation - Momentum	12.8%	9.9%	2.9%	0.95	22.8%	57.3%	0.50
Factor Rotation - Composite	12.1%	9.9%	2.2%	0.98	23.6%	64.0%	0.46
Factor Rotation - Value with Trend	11.7%	9.9%	1.8%	0.58	19.3%	49.1%	0.54

* Returns are model returns and do not reflect actual trading. Full performance disclaimer

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Our Latest Articles

3/31/2021

The Changing Nature of Momentum

By Jack Forehand (@practicalquant)

Investors sometimes want to pigeonhole investing factors. We want to look at a factor and associate a certain type of company with it. Doing so makes us more comfortable with the factor and makes us believe we have a better feel for the types of stocks we will get if we invest using it.

3/24/2021

The Five Horsemen of Valuation Ratios

By Justin Carbonneau (@jjcarbonneau)

No, this isn’t an article about pro wrestling, Ric Flair and his sidekicks. Rather, it’s an introductory piece on the different ratios used to assess whether or not a stock is trading at a value relative to its history, its peer group or the overall market. We often talk about valuation ratios in our articles and we assume that readers understand them, but sometimes that assumption isn’t a fair one.

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Our Podcast - Excess Returns

4/5/2021

Episode 81: The Strengths and Weaknesses of the Major Value Metrics

Many investors think all value strategies are fairly similar to each other. And as a result they expect the value funds they invest in will all perform similarly over time. But the reality is that the behind the scenes details that go into building a value strategy can play a major role in how it performs and lead to major deviations in performance among value funds. In this episode, we take a look at one way that value strategies can differ - the metric they use to define value. We look at the major value metrics and the pros and cons of each of them. We also look at the construction of value composites and why their benefit might come from a different source than the one you think.

4/1/2021

Episode 80: The History of Berkshire Hathaway and Warren Buffett with Adam Mead

There have been hundreds of books written about Warren Buffett and Berkshire Hathaway. So it rare for a book come out that does something that none of the others have. But a new book coming out in April does exactly that by offering the first full chronological history of Berkshire Hathaway, from the period prior to Buffett all the way to the current day. In this episode, we talk to Adam Mead, the author of The Complete Financial History of Berkshire Hathaway: A Chronological Analysis of Warren Buffett and Charlie Munger's Conglomerate Masterpiece. We discuss the origin story that brought Buffett together with Berkshire, Buffett's best and worst investments, his best investment you probably haven't heard about, the key traits that led to Buffett's success, and what it is like to attend the Berkshire annual meeting.

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Videos

Webinar: An Overview of Validea

A detailed look at the site and how to use it.

2020 Portfolio Overview and What 2021 May Hold

A look at how our models performed in 2020 and a look forward to 2021.

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What Our Users Are Saying About Validea

Validea is an incredible valuable tool to have. I depend on it for much of my research to help weed out stocks for my portfolio designs. The filters used for stock selection are easy to use and comes with a detailed analysis as to the why each particular stock either passes or fails the test. The articles & blogs are a great wealth of knowledge too.

Eric J.
Financial Advisor

As a retail investor, I particularly value Validea’s top-notch research capability. With the deluge of investment commentary available via innumerable blogs, articles, FinTwits, white papers, podcasts, etc., the Validea team is one of my go-to sources to maintain some perspective on what's really happening.

Rolf D.

I am always checking my investment/trading ideas with Validea. I feel better knowing that any of the guru models they are following might also be on my side!

Urs K.

Find Your Edge With Validea's Quantitative Investing Tools

Guru Analysis

Analysis of 6000+ stocks using the proven strategies of investment legends like Warren Buffett, Benjamin Graham and Peter Lynch. See the details behind "why" some stocks look good and others don't through the guru methodologies.

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Model Portfolios

22 different model portfolios based on our time tested factor-based strategies.

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ETF Portfolios

Our ETF portfolios use value, momentum and macroeconomic factors to rotate among factors, sectors and asset classes.

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Screen for stocks that pass the strategies of investment legends such as Joel Greenblatt, John Neff and Martin Zweig. Combine multiple strategies together or add in fundamental filters to refine your result set.

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Our trend following system covers over 45+ asset & investment classes and seeks to help limit losses during major market declines while maintaining a disciplined re-entry method when prices revert. Get alerted when the signals change between Buy and Sell.

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Performance Disclaimer: Returns presented on Validea.com are model returns and do not represent actual trading. As a result, they do not incorporate any commissions or other trading costs or fees. Model portfolios with inception dates on or after 12/30/2005 include a combination of back tested and live model returns. The back-tested performance results shown are hypothetical and are not the result of real-time management of actual accounts. The back-testing of performance differs from actual account performance because the investment strategy may be adjusted at any time, for any reason and can continue to be changed until desired or better performance results are achieved. Back-tested returns are presented to provide general information regarding how the underlying strategy behind the portfolio performed in our historical testing. A back-tested strategy has the benefit of hindsight and the results do not reflect the impact that material economic or market factors may have had on advisor's decision-making if actual client assets were being managed using this approach. The model portfolios offered on Validea are concentrated and as a result they will exhibit high levels of volatility and their performance can be substantially impacted by the performance of individual positions.

Optimal portfolios presented on Validea.com represent the rebalancing period that has led to the best historical performance for each of our equity models. Each optimal portfolio was determined after the fact with performance information that was not available at portfolio inception. As a result, an investor could not have invested in the optimal portfolio since its inception. Optimal portfolios are presented to allow investors to quickly determine the portfolio size and rebalancing period that has performed best for each of our models in our historical testing.

Both the model portfolio and benchmark returns presented for all equity portfolios on Validea.com are not inclusive of dividends. Returns for our ETF portfolios and trend following system, and the benchmarks they are compared to, are inclusive of dividends. The S&P 500 is presented as a benchmark because it is the most widely followed benchmark of the overall US market and is most often used by investors for return comparison purposes. As with any investment strategy, there is potential for profit as well as the possibility of loss and investors may incur a loss despite a past history of gains. Past performance does not guarantee future results. Results will vary with economic and market conditions.

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