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AlphaProfit Completes Ten Years of Trusted Service

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






Fidelity Core






Fidelity Focus






ETF Core






ETF Focus






S&P 500






* from Dec 31, 2012 to Sep 30, 2013

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.

Avg. Category 10-Year Ann. Return, %

Average Category 10-Year Annualized Return

AlphaProfit Fidelity & ETF model portfolios have earned at annualized rates between 9.7% and 11.2% to outperform the average mutual fund in each of Morningstar's domestic fund investment style categories.

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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)


Brandywine Blue (BLUEX)


Fidelity Magellan (FMAGX)


JHancock Classic Value (PZFVX.LW)


Legg Mason Cap Mgmt Value (LMVTX)


Longleaf Partners (LLPFX)


Muhlenkamp (MUHLX)


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


ETF Core

Long term capital appreciation

7 to 8


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


1 $1,500+ in SEP-IRAs & Keoghs       2 $5,000 in SEP-IRAs & Keoghs

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.

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Fidelity Portfolio Returns
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By Hulbert #1 rank winner Dr. Sam Subramanian

'Incisive Insights, Impressive Results'   - Jim Woodruff

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About AlphaProfit
AlphaProfit Investments, LLC is an independent investment research firm based in Sugar Land, TX. AlphaProfit publishes the AlphaProfit Sector Investor's Newsletter, edited by Dr. Sam Subramanian. Leveraging sector funds, the Newsletter provides high-performance model portfolios with Fidelity funds and exchange-traded funds. It also includes actionable stock recommendations. This newsletter features among MarketWatch's top 10 investment newsletters and has won the coveted #1 rank from Hulbert Financial several times.

Media Inquiries
To inquire about AlphaProfit and its publications or to interview Sam Subramanian, please call (281) 565-6963 or send e-mail.

This press release is for information purposes only. Nothing herein should be construed as an offer to buy or sell securities or to give individual advice on investing. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. AlphaProfit Investments, LLC is not responsible for any errors or omissions. AlphaProfit Investments, LLC neither is associated with nor receives any compensation from any of the investment companies, brokers or entities connected with the securities mentioned herein. Please review our Terms and Conditions of Use and Subscriber Agreement which is available on our website at www.alphaprofit.com; they govern your relationship with AlphaProfit Investments, LLC, including, but not by way of limitation, use of the AlphaProfit MoneyMatters.

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