This strategy seeks positive returns regardless of market environment. The portfolio, in contrast to others, has a short bias to capitalize on markets perceived to be in a secular bear trend.
The Value Leaders Long/Short Strategy is for sophisticated and aggressive investors who seek portfolio appreciation. However, investors in this strategy lack confidence in the sustainability of any upward trending market. They are comfortable and willing to accept the additional risk of shorting the market and individual securities.
Portfolio management and security selection encompasses both fundamental and technical analysis. Management employs internal and external intelligence in the execution of this approach.
Our process includes identifying the securities of companies that can grow sales and earnings at above average rates, and judgments about whether those securities are under or overvalued relative to market conditions. These include those with longer-term return potential because of economic and technological change, new product and service development, market or geographic expansion, or structural change that unlocks shareholder value. Macro-economic and market trends are also studied to help with the timing of purchases.
Shorting & Risk Management
PVG employs both inverse market securities and the shorting of individual securities in he Value Leaders Long/Short Strategy. The portfolio may be long or short the market and individual securities seeking to benefit from a falling market or individual securities prices. In addition, these portfolios may hold substantial cash positions.
Securities are bought and sold as objectives are reached or as dictated by fundamentals and price activity. In addition, management employs stop-loss limits on portfolio holdings to reduce unacceptable risk. Individual security positions rarely exceed 5% of any account value, except in the case of diversified ETF holdings.