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Two complementary strategies- price momentum and value investing- are employed in managing equity portfolios. The price momentum strategy focused on those stocks, which are performing the best relative to the rest of the market. The objective is to be invested in those stocks, which are exhibiting rapid increases in price. At the other end of the investment spectrum, the value strategy selects those stocks which appear to be the most attractively priced relative to the rest of the market, and which will appreciate over time as investors recognize their inherent value.
The core portfolios (Cambridge Core Equity Portfolio) is comprised of 30 stocks, selected as follows:
S&P Momentum
A 10-stock list selected from the S&P 500 on the basis of price momentum. This list is adjusted on a quarterly basis.
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CFGI Momentum
A 10-stock list selected from the companies comprising the Cambridge Financial Group Industrials on the basis of price momentum. This list is adjusted on a quarterly basis.
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CFGI Value
A 10-stock list selected from companies comprising the Cambridge Financial Group Industrials on the basis of value, i.e., Yield, P/E ratio and dividend coverage. This list is adjusted on an annual basis.
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A technical composite, based on 10 indicators is utilized to assess the market environment. When conditions are determined to be unfavorable, the S&P Momentum list is sold, and proceeds are held in cash-equivalent funds.
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