MagicDiligence Spells Tracking Portfolios Summary

Expand rows to see individual tracking portfolios. Data is updated through 2017-08-31.

SpellPerformancevs S&POutperforming
Magic Recipe 15.72% -5.99% 1 of 5
Portfolio_1 4.82% -16.89%
Portfolio_2 27.91% 6.20%
Portfolio_3 9.29% -12.42%
Portfolio_4 18.43% -3.28%
Portfolio_5 18.16% -3.55%
Deep Value 6.60% -15.11% 1 of 5
Portfolio_1 -3.83% -25.54%
Portfolio_2 -11.79% -33.50%
Portfolio_3 20.87% -0.84%
Portfolio_4 27.81% 6.10%
Portfolio_5 -0.04% -21.75%
Quality Growth 34.08% 12.37% 5 of 5
Portfolio_1 34.79% 13.08%
Portfolio_2 34.75% 13.04%
Portfolio_3 34.72% 13.01%
Portfolio_4 39.32% 17.61%
Portfolio_5 26.84% 5.13%
S&P 500 21.71% -- --

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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