Written by: Prof. Yigal Newman
Tipigo has created representative portfolios,*investing solely based on the signals it generates for each stock in its investment universe. This signal is based on the generally noisy information contained in Wall Street analyst recommendations, and on the premise that Tipigo’s algorithm is able to tease out those recommendations that have timely value for investors. The portfolios demonstrate how Tipigo’s quantitatively derived signal can be utilized to build a profitable portfolio that delivers consistent excess returns and handily beats its benchmark.
This note describes the simulated performance of Tipigo’s Representative Portfolios (TRP) during 2023. TRPs are created for each of the three investment universes: stocks included in the S&P500 Index, stocks included in the NASDAQ-100 Index, and stocks included in the Russell 2000 Index. The performance of each TRP is then compared to that of its benchmark index. The following table presents the results for 2023.
The following chart presents the growth of $100 invested inTRP-SPX (Tipigo’s Representative Portfolio for the S&P500 Universe) vs the growth of $100 invested in the S&P500 Index itself, during 2023. The terminal value is $140.22 for funds invested in TRP-SPX vs $126.24 for funds invested in the Index.
It should be stressed that these results are simulated, not based on actual performance. Also, past performance is not indicative of future performance.