Turbulent Times Establish AlphaProfit as Critical Resource for ETF, Fidelity, and Mutual Fund Investors
AlphaProfit’s Premium Service investment newsletter completed its tenth anniversary on September 30, 2013.
The annualized returns of the sector model portfolios provided in the Premium Service investment newsletter and the S&P 500 ($SPX) from Sept. 30, 2003 to Sept. 30, 2013 are shown below.
Model Portfolios | YTD* | 1-Year | 3-Year | 5-Year | 10-Year |
---|---|---|---|---|---|
Fidelity Core | 32.0% | 33.7% | 18.6% | 11.7% | 9.9% |
Fidelity Focus | 34.5% | 35.9% | 19.4% | 10.2% | 11.2% |
ETF Core | 26.1% | 26.7% | 17.7% | 10.8% | 9.7% |
ETF Focus | 30.8% | 29.7% | 17.6% | 9.5% | 11.2% |
S&P 500 | 19.8% | 19.3% | 16.3% | 10.0% | 7.6% |
Commenting on the performance of Premium Service’s mutual fund and ETF model portfolios, Dr. Sam Subramanian, Editor of AlphaProfit’s Premium Service Investment Newsletter said, ‘It is gratifying to see AlphaProfit’s investment process and recommendations have stood the test of the last 10 years … arguably the toughest decade in recent investing history.’
AlphaProfit’s Investment Process
AlphaProfit uses the ValuM investment process developed by Dr. Sam Subramanian in the early 1990s. By maximizing gains during the dot com boom and minimizing losses during the bust, the ValuM process helped him grow capital at 32.4% annually for 10 years from 1994.
Following this success, Dr. Subramanian started AlphaProfit in 2003 to share the process and model portfolios with other investors.
AlphaProfit reduces risk and increases returns by using a valuation-centric investment selection process, engaging in prudent market timing, and diversifying investments optimally.
AlphaProfit selects sectors based on valuation, momentum, and news quality. This helps investors actually ‘Buy Low’ by identifying value-priced investments with catalysts to propel them towards intrinsic value.
AlphaProfit also reduces fees, expenses, and effort. The sector portfolios exclusively use no-load no-transaction fee mutual funds and low-cost ETFs. They optimize the fund holding period to reduce effort and avoid short-term redemption fees.
Over 70% of investment selections in the past 10 years proved to be winners.
Here are some examples of actual gains scored by AlphaProfit Premium Service subscribers with tactical sector rotation:
- 117% gain from Fidelity Select Biotechnology (FBIOX), 6/30/2011 to 9/30/2013
- 144% gain from SPDR S&P Retailing (XRT), 12/31/2008 to 12/31/2010
- 119% gain from Fidelity Select Wireless (FWRLX), 9/30/2003 to 12/31/2005
- 77% gain from SPDR S&P Biotechnology (XBI), 6/30/2011 to 9/30/2013
- 102% gain from Fidelity Select Retailing (FSRPX), 12/31/2008 to 12/31/2010
- 84% gain from Consumer Discretionary Select Sector SPDR (XLY) and Vanguard Consumer Discretionary ETF (VCR), 12/31/2008 to 12/31/2010
Notably, AlphaProfit model portfolios exited all financial and real estate-related investments by the end of 2006 and stayed away from these troubled groups until 2009 avoiding the typical 60% drubbing these investments suffered from 2007 through 2008.
How AlphaProfit’s Investment Process Works
Over any length of time, specific sectors invariably fare better than the overall market. The past decade is no exception when natural resources and health care investments fared better than the S&P 500 while financial investments fared worse.
By including the right investment at the right time, all four of the AlphaProfit sector model portfolios have outperformed the average Fidelity domestic fund, the average domestic mutual fund, and average domestic ETF. The average domestic Fidelity fund, the average domestic mutual fund, and average domestic ETF have gained at annualized rates of 8.5%, 7.8%, and 8.9%, respectively.
All four model portfolios have earned more than the average mutual fund in each of Morningstar’s domestic fund investment style categories. The average 10-year annualized returns of these categories range from 6.8% for Large-Growth to 9.6% for Small-Value. In comparison, AlphaProfit Fidelity & ETF model portfolios have earned at annualized rates between 9.7% and 11.2%.
Fund Name (Ticker) | Ann. Ret., % |
---|---|
American Century Value (ACLCX) | 6.7% |
Brandywine Blue (BLUEX) | 5.3% |
Fidelity Magellan (FMAGX) | 5.2% |
JHancock Classic Value (PZFVX.LW) | 5.0% |
Legg Mason Cap Mgmt Value (LMVTX) | 2.1% |
Longleaf Partners (LLPFX) | 6.3% |
Muhlenkamp (MUHLX) | 4.9% |
The AlphaProfit Fidelity & ETF model portfolios have also outperformed several popular mutual funds with high-profile managers. These mutual funds have gained at average annual rates ranging between 2.1% and 6.7% in the 10-year period ending on Sept. 30, 2013.
High success rate & superior returns of investment selections from timely sector rotation have enabled the AlphaProfit model portfolios and Premium Service investment newsletter bag the #1 rank multiple times from Hulbert Financial, the Consumer Digest of investment newsletters.
What Subscribers Receive in AlphaProfit Premium Service
During the past 10 years, AlphaProfit’s Premium Service has expanded its investment universe and types of recommendation.
Reflecting on the enhancements, Dr. Subramanian said, ‘We started the service in 2003 with two sector-based model portfolios, Fidelity Core and Fidelity Focus. Since then, we have increased the number of model portfolios and recommendations.’
Today, AlphaProfit Premium Service investment newsletter subscribers receive five model portfolios that can be used in modest sized accounts with different investment objectives.
Model Portfolio | Investment Objective | Typical Total Holdings | Account Size |
---|---|---|---|
ETF Focus | Aggressive growth | 2 to 4 | $4,000+ |
ETF Core | Long term capital appreciation | 7 to 8 | $8,000+ |
Fidelity Focus | Aggressive growth | 2 to 4 | $7,500+ 1 |
Fidelity Core | Long term capital appreciation | 7 to 8 | $25,000+ 2 |
NTF Growth | Long term capital appreciation | 5 to 8 | $35,000 |
Additionally, AlphaProfit Premium Service subscribers receive stock recommendations. They enable investors to seek strong short-term returns by using precise Buy and Sell price targets to invest in attractively valued stocks with appealing earnings trends & near-term catalysts.
Why AlphaProfit Premium Service
The success of AlphaProfit’s investing approach during a period of financial turmoil proves it is an indispensible resource for investors to protect and grow their money.
During a period when many investors lost money, AlphaProfit Premium Service Subscribers have grown assets while outperforming the S&P 500 and other benchmarks … all this for a modest subscription cost.
Dr. Subramanian cites prudent risk taking, low account size requirement and consistency of investment process & style as three key reasons why investors prefer AlphaProfit.
Prudent Risk Taking: AlphaProfit model portfolios balance return potential with diversification and tax efficiency.
Low Investment Requirements: Individual AlphaProfit model portfolio can be used with as little as $1,500 in SEP-IRA or Keogh accounts and $4,000 in regular or other qualified accounts like Rollover, Roth, or Regular IRA.
Consistent Investment Process & Style: AlphaProfit model portfolios consistently use the ValuM investment process to select sectors & industry groups, eliminating investor’s concerns on returns being affected by fund management and investing strategy changes.
Summing up, Dr. Subramanian said, ‘AlphaProfit helps investors protect & grow their wealth by reducing risk and increasing returns with its time-tested, proven investment process.’
By reducing fees and expenses, AlphaProfit’s investment process maximizes invested capital and ensures investors trade only to add substantial value to their accounts. Low account size requirements make AlphaProfit’s Premium Service suitable for many investors.