Top Performing Stock Models

Guru Based on	Strategy Name	Number Of Stocks	Rebalancing	Annual Return	S&P 500	+/- S&P 500
Dashan Huang	Twin Momentum Investor	10	Monthly	22.4%	12.9%	9.5%
Partha Mohanram	P/B Growth Investor	10	Tax Efficient	15.9%	7.4%	8.5%
James O'Shaughnessy	Value Composite Investor	10	Tax Efficient	20.4%	12.9%	7.5%
Motley Fool	Small-Cap Growth Investor	10	Tax Efficient	14.4%	7.9%	6.5%
Wesley Gray	Quantitative Momentum Investor	20	Monthly	12.9%	7.6%	5.3%
Patrick O'Shaughnessy	Millennial Investor	10	Monthly	18.1%	12.9%	5.2%
Wayne Thorp	Earnings Revision Investor	10	Monthly	17.2%	12.9%	4.3%
Meb Faber	Shareholder Yield Investor	10	Monthly	17.1%	12.9%	4.2%
Martin Zweig	Growth Investor	20	Tax Efficient	11.8%	7.9%	3.9%
Validea	Momentum Investor	10	Monthly	11.5%	7.9%	3.6%

* 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	13.4%	9.3%	4.1%	0.58	18.9%	34.7%	0.64
Factor Rotation - Composite with Trend	13.0%	9.3%	3.7%	0.57	18.8%	40.7%	0.62
Factor Rotation - Momentum	12.0%	9.3%	2.7%	0.95	22.8%	57.3%	0.47
Factor Rotation - Composite	11.3%	9.3%	2.0%	0.98	23.5%	64.0%	0.42
Factor Rotation - Macro with Trend	11.0%	9.3%	1.7%	0.56	18.1%	38.9%	0.53

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

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Our Latest Articles

1/13/2020

Considerations For Investors Seeking High Dividend Paying Stocks

By Justin Carbonneau (@jjcarbonneau)

Many stock investors seek out high dividend paying companies. Over time, dividends have been an important component of long-term stock returns and many investors, particularly investors drawing off their portfolios, favor higher yielding companies because they view income paying investments as getting "paid while they wait".

1/6/2021

The Case Againt Value Stocks - Part II

By Jack Forehand (@practicalquant)

It would be an understatement to say that the last decade has been a challenging one for value investors. The problems were initially isolated to certain value metrics (i.e. Price/Book) and more contained in strategies that overweighted certain sectors, but in the past few years the damage spilled over into pretty much any way you tried to represent value. And just when it seemed things couldn’t get any worse, the coronavirus came in and dealt one more horrible gut punch to value.

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Our Podcast - Excess Returns

1/18/2021

Episode 65: Why Dividend Investing May Be Overrated

Dividend based investing strategies are very popular among investors. The ability to receive regular cash payments from the equities they own and a belief that dividend paying stocks outperform the market are both major drivers of this popularity. But this preference for dividend stocks often exceeds the reality of the benefits they provide. In this episode, we take a look at the facts behind dividend investing. We look at how dividend-paying stocks perform over time and why the source of their outperformance may be different than many investors think. We also look at alternative ways to accomplish the goals of strategies based around dividends.

1/11/2021

Episode 64: Breaking Down the Investment Strategy of Peter Lynch

Peter Lynch is one of the most successful mutual fund managers of all time. Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. And he did it with an approach that is very unique among history's most successful investors. In its paper Superstar Investors, AQR tried to use factors explain the historical performance of some of the best investors of all time, and Lynch's performance was the most difficult to explain using that framework. In this episode, we look at Lynch's approach to investing and our quantitative strategy based on him, which we extracted from his book One Up On Wall Street. We also look at why his strategy is so difficult to quantify.

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Videos

Webinar: An Overview of Validea

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

Top Quant and ETF Strategies in a Historic Market

A look at some of our strategies and how they worked in the historic 2020 market

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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

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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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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.

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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