New Portfolios - January 2023

January 16, 2023 Printer Friendly Printer Friendly

Introduction

We have created an updated set of portfolios that are based on some of Stock Rover’s most popular screeners. You can import any of the portfolios that interest you into your Stock Rover account via the Stock Rover Investors Library. This will allow you to see each of the stocks that passed the associated screener and track their performance.

The portfolios will also be used to start a test of the performance of the portfolios relative to each other as we go forward in time. This in turn will give us an idea of which screeners are performing well in the current market environment, as well as the ones that are performing poorly. Note this is the second such test of the screeners. The first test, still running, was started in July of 2022. You can read about that test in our blog post Real World Screener Performance.

The Screeners

The methodology I used was to run 13 separate popular Stock Rover screeners on January 1st, 2023. Each screener generated its own unique list of passing tickers. The passing tickers were in turn used to generate 13 separate portfolios, each based on a specific screener.

Each portfolio had a differing number of stocks, based on the number of stocks that passed the screener. However, all portfolios were constructed so each passing stock was equally weighted within the portfolio, with each stock getting an allocation of $10,000 of virtual capital within the portfolio.

The 13 screeners that were tested were as follows:

  • Buffettology Inspired
  • CAN SLIM
  • Capital Efficiency
  • Dividend Growth
  • Fair Value
  • Growth at a Reasonable Price
  • Large Cap Value
  • Piotroski High F-Score
  • Safe Performers
  • S&P 500 Outperformance
  • Stock, Industry and Sector Momentum
  • Strong Buys
  • Top Stocks

All of these screeners are provided by default when you first create your Stock Rover account. If you have been a Stock Rover member for a long time, the screeners in your account may not match this list, but all of the above screeners are available from the Library and any of them can be imported into your account.

By using the Stock Rover Screener Manager, the detailed descriptions for the screeners can be found in the description within the screener itself. And the screener criteria can be viewed from within the Screener Manager when the screener is selected.

An example with the Strong Buys screener selected is shown below.

Strong Buys Screener

The Portfolios

Each of the 13 portfolios created from the screeners is named in a consistent fashion in the format BT – screener name 2023, where screener name is the name of the associated screener. BT is an abbreviation for Back Test.

For example the portfolio associated with the Dividend Growth screener is named
BT – Dividend Growth 2023.

All of the portfolios created for the backtest exercise are available for import from the Stock Rover Library.

Portfolio Import from the Library

The following table lists the number of stocks that passed each of the 13 screeners when they were run.

Portfolio Number of Positions
BT – Buffettology 2023 50
BT – CAN SLIM 2023 13
BT – Capital Efficiency 2023 33
BT – Dividend Growth 2023 77
BT – Fair Value 2023 32
BT – Growth at a Reasonable Price 2023 53
BT – Large Cap Value 2023 50
BT – Piotroski High F-Score 2023 45
BT – Safe Performers 2023 50
BT – S&P 500 Outperformance 2023 42
BT – Stock, Industry and Sector Momentum 2023 119
BT – Strong Buys 2023 50
BT – Top Stocks 2023 42

You will notice that the number of stocks in a given portfolio vary from 13 (CAN SLIM) to 119 (Stock, Industry and Sector Momentum). This dispersion can dramatically impact both the performance and the risk reward profile of a screener. Generally the more stocks in a portfolio, the smaller the performance variation and the lower the volatility. Or in other words, portfolios with fewer stocks will inherently have a higher risk/reward profile.

Conclusion

The new portfolios that have been added to the Stock Rover Investors Library can give you a great head start to find some interesting investment candidates in 2023, as each of the portfolios is based on a popular screener in Stock Rover.

A future blog post will detail how each of these screeners and their associated portfolios fared as we make our way through 2023 and beyond.




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