WMA Portfolio Strategies Description and Latest Report

The following WMA Portfolio Strategies are managed by Owen Williams and Bill Cara. From April 1, 2018, Dr. Owen Williams PhD, CFA, has been senior portfolio manager for both Williams Market Analytics LLC and Cara Portfolio Management Limited, which are SEC registered capital managers. Bill Cara is manager or co-manager of the Natural Resources Portfolio and Deep Value portfolio. Depending on demand, additional portfolio strategies will be considered.

Table of Contents

A- Top Picks Portfolio

The WMA Top-Picks Portfolio seeks to relatively out-perform the broad U.S. equity market, as measured by the Russell 3000 Index.  The selection relies on the WMA Total Market Techno-Fundamental Allocation Model, which screens a comprehensive list of companies of all market capitalizations. Based on a fundamental scoring methodology, companies are ranked according to three thematic categories: Value, Growth, & Yield.  A quantitative overlay is then applied to eliminate stocks whose absolute share price or relative price are in weekly intermediate/long-term downtrends.

The portfolio selection attempts to maintain a blended allocation, with approximately one-third of assets invested in each of the three thematic categories (for investors interested in a specific thematic — Ultra Yield, Ultra Growth, or Ultra Value — we run dedicated portfolios in each of these themes, contact us for info).  Stocks are entered the portfolio on an equally-weighted basis with a maximum of 25 to 30 position. With a more than three-month targeted holding period for investments, this strategy best suits investors seeking long-term capital appreciation and income.

The latest monthly report is shown below (click on PDF link below if image does not appear). Use the pop-out tool  and zoom (+) to better view.

B- Ultra-Yield Portfolio

The WMA Ultra-Yield Portfolio seeks to relatively out-perform the S&P High Dividend Yield Index.  The selection relies on the WMA Total Market Techno-Fundamental Allocation Model, which screens a comprehensive list of companies of all market capitalizations. The selection of securities for the Ultra-Yield portfolio is a subset of high yield stocks from our Top Picks portfolio. The Ultra-Yield portfolio remains invested in 20 companies which meet our fundamental selection criteria and offer a dividend yield significantly higher than that of the broad equity market.

The latest monthly report is shown below (click on PDF link below if image does not appear). Use the pop-out tool  and zoom (+) to better view.

C- Natural Resources Portfolio

The WMA Natural Resources Portfolio Strategy offers exposure to precious and industrial metals, and other basic materials required by a growing world economy such as oil, natural gas, oil & gas refining, frac sand, uranium, solar, copper and wood, among others.  Using rigorous investment analysis, we invest in a portfolio of 12 to 24 fundamentally attractive companies. Market entry and exit timing is based on proprietary trend & cycle studies. By participating in equity markets when sentiment is bullish while preserving capital during negative environments, our long-term plan is to achieve higher risk-adjusted returns than passive buy and hold strategies such as the S&P North American Natural Resources Index benchmark. We also seek to provide diversification benefits through low correlation to traditional asset classes.

The latest monthly report is shown below (click on PDF link below if image does not appear). Use the pop-out tool  and zoom (+) to better view.

D- Dynamic Global Index Rotation Portfolio — Global Equities

The strategy seeks to outperform a global equity benchmark index (MSCI All-World) both in bull markets and in bear markets. The investment universe is global equities, with no restrictions across countries and a non-benchmarked allocation. The strategy invests in both national indexes and in sector indexes from all regions (U.S., European, Asian and Emerging Market). Our universe contains around 200 global indexes with an associated “investable” ETF (dollar-denominated, high daily volume, tight bid/ask spread). This universe is chosen to minimize the problem of asymmetric information inherent in trading individual or less liquid stocks, where knowledge of the company and/or insider information is critical. The strategy primarily invests in long equity positions with a maximum holding of 100% of assets (no leverage, no short positions). Remaining fully invested is necessary in order to outperform the indexes in bull markets. The cash balance is discretionary and is a reflection of the overall risk environment. While the objective is to maintain a minimal cash holding (100% long equities), a deterioration of risk conditions signaled by the models allows the manager to raise cash in line with the risk indicator. The strategy depends on a dynamic rotation into outperforming nations or sectors.

An extended description can be found here.

The latest monthly report is shown below (click on PDF link below if image does not appear). Use the pop-out tool  and zoom (+) to better view.

E- WMA Roads, Bridges & Water Index Tracker

The U.S. infrastructure is crumbling after years of neglect. America’s infrastructure problems have been highlighted during the 2016 Presidential Election, the Flint, Michigan Water Crisis, and by warnings from the American Society of Civil Engineers. America’s infrastructure problems will have to be addressed in the coming years and huge amounts of money will be spent. The WMA RB&W Index is the only U.S.-centric infrastructure index targeting specifically the likely beneficiaries from rebuilding America’s roads, bridges, and water infrastructure, weeding out the oil & gas names. The index works back up the supply chains of non-investable private contractors who will receive large government contracts.

The latest monthly report is shown below (click on PDF link below if image does not appear). Use the pop-out tool  and zoom (+) to better view.

F- WMA Homeland Security Index Tracker

Security concerns have become an unfortunate part of life in the 21st century. From global terrorism and military conflicts int he Middle East to cyber crimes and inner-city violence, more and more resources are being committed to protecting citizens. President Trump is committed to building a bigger and stronger U.S. military. Security screening is intensifying at airports, stadiums, and other places of assembly. Cyber criminality has cost a combined total of $113 billion over the past 12-months and corporations are increasingly ratcheting up their spending on fighting cyber threats.

President Trump has also promised a society of law and order with expanded policing including “stop-and-frisk” to clean up inner cities. Significant taxpayer money will be allocated to reinforce America’s law enforcement resources. The WMA Homeland Security Index specifically targets firms who will benefit from the war on terrorism and crime. Several factors should keep the Homeland Security Index positively oriented in 2018. First, Trump and the Republicans will be spending on national defense. Second, North Korea remains a concern for financial markets and military defense contractors will find a geopolitical bid.Finally, the era of internet security and cyber attacks is just beginning and the index holdings will profit from this risk.

The latest monthly report is shown below (click on PDF link below if image does not appear). Use the pop-out tool  and zoom (+) to better view.