iQ Greatest Hits Model
INVESTMENT OBJECTIVE
The iQUANT.pro Greatest Hits Model seeks to generate long-term returns in excess of the total return of the S&P 500 Index, with a global portfolio of all-cap stocks.
The iQ Greatest Hits Model is based on the premise that if a stock is selected by multiple (and independent) iQUANT.pro models, it may have more characteristics of a stock that has a higher probability of positive future returns than a stock selected by just one model.
INVESTMENT PROCESS
The iQ Greatest Hits Model implements the following rules-based process on a seasonal quarterly basis:
•Begin with a starting universe of all iQUANT.pro quarterly models that are not sector-specific.
Please note that the semi-annual equity strategy of the Sell in May model is also included in the starting universe.
•Select the ten stocks that are selected by the most models.
•In the event of a tie, select the stock with the highest average rank per model.
The Model reconstitutes every February, May, August and November.
The premise behind the Greatest Hits portfolio
Because it has been vetted and validated by multiple approaches and perspectives, a stock chosen by multiple strategies is more likely to outperform a stock chosen by a single strategy.
When a stock is selected by multiple strategies, it is because it meets the criteria and characteristics that are important to each strategy, indicating that it may have strong fundamentals and positive momentum. This can lead to greater market acceptance and demand for the stock, potentially driving up its price.
Additionally, the more strategies that select a stock, the greater the level of confidence that investors may have in its potential for growth and profitability.