How It Works

Stock Evaluation

Every stock is scored using a multi-factor quant model that grades five key dimensions:

• Growth (35%) — Is revenue and earnings growth accelerating? Our heaviest-weighted factor: we want companies with strong top- and bottom-line trajectories.
• Revisions (30%) — Are analyst earnings estimates being revised upward? Rising estimates are one of the strongest leading indicators of future price performance.
• Profitability (15%) — How efficiently does the company convert revenue into profit? Margins, return on equity, and cash flow quality all factor in.
• Momentum (15%) — Is the stock's price trend confirming the fundamental story? We want stocks where the market is already rewarding improving fundamentals.
• Valuation (5%) — Is the stock reasonably priced relative to its earnings and growth? This keeps us from overpaying, but we intentionally weight it lowest — cheap stocks are often cheap for a reason.

Each factor receives a letter grade (A+ through F) based on where a stock ranks relative to the full universe. The weighted grades combine into an overall quant rating from 1 to 5.

How Stocks Are Selected

A stock must clear specific minimum grade thresholds to be considered a buy:

• Revisions grade of B+ or higher
• Growth grade of B or higher
• Valuation grade of C- or higher (avoid extreme overvaluation)
• Overall quant rating of 4.0+

The portfolio holds up to 50 positions, each new buy sized around 3.5% of the book. We add the single best qualifying name each cycle and let winners run — conviction adds on names up 30%+, with weight caps to manage concentration. New picks are evaluated every other week.

When We Sell

We don't use fixed holding periods or trailing stops. A stock is sold when its quant rating falls below 2.5, with a full exit below 1.5. Big winners (up 60%+) may be partially sold to protect gains, and positions that stay underwater for 150+ days with a weak rating are force-sold to clear out stale losers.

Data & Refresh Schedule

Prices are refreshed daily after market close. Full fundamental data (financials, estimates, revisions) is refreshed weekly. The system continuously rescores the entire stock universe so that grades reflect the latest available data.