One of the nicest things about my occupation is that I meet and get to know scores of young and talented people.
One of them – who at this point will remain anonymous – approached me with an interesting idea earlier this year. He had been back-testing a security selection model for companies that trade on the TSX, which he calls The Capture Model, and the results were astonishing.
But a back-tested model and one in “live time” are two very different things. So I proposed the following. Commencing 2017, I would allocate $100,000 in one of my RSP accounts to The Capture Model. He would tell me what securities to buy… and when… and we would track the growth against the agreed upon benchmark, the S & P TSX Composite.
Here’s the deal: On Friday December 30th we will purchase the securities that are generated by the model with an equal weighting scheme. And from that point forward, the portfolio would be passively managed for the next 12 months with rebalancing the last trading day of 2017.
And in order to be perfectly transparent, the list of securities and their purchase price (including commission) will be provided, days after they are purchased, and the monthly totals of both the benchmark and portfolio will be provided on a monthly basis.
April 30, 2017
It has been a slow start to 2017 with the S&P/TSX Composite Index up 2.00%. However, The Capture Model is performing well, up 8.26%.
So far, 20 of the 28 companies are in positive territory. The Model has benefited from:
- Overweight: Consumer Discretionary, Information Technology, Utilities and Consumer Staples.
- Underweight: Energy and Financials
Top 5 Performers:
- Halogen Software Inc. (HGN.TO) +50.42%
- Empire Ltd. (EMP.A.TO) +34.67%
- Canfor Corp. (CFP.TO) +34.12%
- Kinaxis Inc. (KXS.TO) +33.74%
- Avigilon Corp. (AVO.TO) +29.10%
Worst 5 Performers:
- Concordia International Corp. (CXR.TO) -35.09%
- Valeant Pharmaceuticals Intl. -31.54%
- Seven Generations Energy Ltd. (VII.TO) -21.81%
- DHX Media Ltd. (DHX.B.TO) -20.00%
- Transforce Inc. (TFII.TO) -15.45%