ClearTrack Large-Cap Behavioral Value Investment


Investment Objective

Long-term capital appreciation by exploiting behavioral bias that lead to pricing anomalies.

Portfolio Composition

Equity portfolio comprised of large-cap companies 25-35 holding. 5% max position size 85% of holding must pay a dividend 20% maximum industry exposure

Philosophy Process Contrarian Long-Term Approach

This strategy will seek to invest in high quality businesses that are trading at discounted valuations due to investor behavioral biases.

Behavior Biases Create Opportunities

Understand investor behavior can be a key element to identifying valuation discrepancies in the markets. This strategy will focus on exploiting two common behavioral bias: herding and recency.

The concept of herding, or “group think” results from a false sense of security investors get when they invest in a similar manor as others. Herding is one of the key factors that can lead to extreme market valuations commonly referred to as “bubbles”.

Recency bias results from investors extrapolating current conditions into the future indefinitely. Recency is one of the factors that cause investor to favor risk at market tops and become defensive after a market sell-off.

Risk and Volatility Control

The strategy seeks to reduce volatility by investing in companies with strong credit metrics, a history of growing dividend payments and a management team that is aligned with shareholders through stock ownership and recent open market

Dividends are not guaranteed and must be authorized by the company's board of directors. Every investor's situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Investing involves risk and you may incur a profit or loss regardless of strategy selected.