Premium Portfolio
AIC Premium Small Cap Value Portfolio Performance Vs S&P 500
All returns data is total returns and is time weighted.
This portfolio can contain stocks, etfs, options or any other investment vehicles depending on what is attractive in the market. Since I am a value investor at heart, it will always be focused on finding cheap assets to a large extent. At the same time, there will be diversifying and counter-cyclical factors included as well.
The goal of this portfolio is to generate market-beating returns every single year. A secondary goal is to generate positive returns every single year. I will use a variety of strategies to achieve this.
Strategies Currently in Use:
Kelly Fractions for optimum portfolio sizing: Kelly fractions are recalculated once a month to account for changes in standard deviations and correlations between the stocks.
High frequency rebalancing to harvest volatility: Currently rebalancing atleast once a month or whenever we have a change in the portfolio (new buys or sales)
Value stocks, with majority being small-caps: I may have many potential stock ideas, but most will not make it to the portfolio as they may make the portfolio less optimal using Kelly bets.
This basket is designed to be highly concentrated with position sizes optimized to generate maximum performance at the lowest possible volatility (at the basket level). At the individual stock level, we go for high volatility - therefore it is of utmost importance to build the basket with lightly correlated or uncorrelated stocks.
The current composition is as follows: