MagicDiligence Spells Tracking Portfolios Summary

Expand rows to see individual tracking portfolios. Data is updated through 2017-06-30.

SpellPerformancevs S&POutperforming
Magic Recipe 17.47% -1.47% 1 of 5
Portfolio_1 10.53% -8.41%
Portfolio_2 28.40% 9.46%
Portfolio_3 16.16% -2.78%
Portfolio_4 16.81% -2.13%
Portfolio_5 15.46% -3.48%
Deep Value 9.03% -9.91% 2 of 5
Portfolio_1 -1.94% -20.88%
Portfolio_2 -3.65% -22.59%
Portfolio_3 20.36% 1.42%
Portfolio_4 27.33% 8.39%
Portfolio_5 3.07% -15.87%
Quality Growth 30.68% 11.74% 5 of 5
Portfolio_1 29.59% 10.65%
Portfolio_2 29.60% 10.66%
Portfolio_3 34.49% 15.55%
Portfolio_4 31.68% 12.74%
Portfolio_5 28.02% 9.08%
S&P 500 18.94% -- --

A major challenge with our 'Spells' is implementing a practical strategy for using them. The Tracking Portfolios above are designed to measure the long-term performance of a practical, mechanical buy and sell strategy, using the Spells as the source for stock picks. The strategy works as follows:

  1. Purchase 5 equal weight positions from the spell every 3 months (3 positions for Star List).
  2. Hold for one year.
  3. At end of one year, sell positions. Using proceeds, buy 5 new equal weight positions.
  4. Repeat from step 2.

For the Tracking Portfolios, positions were chosen at random, beginning with a $10k investment per position. Performance is measured by comparing against an S&P 500 tracking portfolio, which made the same size initial investments on the same dates. 5 tracking portfolios were generated for each Spell to produce a good aggregate representation for the overall performance of this strategy.

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