For quite some time we noticed that one of our expert strategy screens (Piotroski U.S.), in which we have invested our own money, hasn’t created a large enough list of stocks which made it very difficult to run a well diversified portfolio.
The main reason for this is that the specific criteria/hurdles of the Piotroski screen are so high that literally only a few stocks survive that screening process – at least for the time being.
As of today there are only 12 stocks left in the U.S. screen that qualify as a holding if you also consider the ‘green traffic light’.
When we now employ on top of this, the technique to time our entry with the ‘model for buying’ as described in the WHEN section of our platform, we have been unable to find enough promising stocks. Therefore the performance has lagged recently and we have decided today to stop following this strategy for the time being due to the lack of choice.
We will however redeploy that capital into a new ALL-EXPERT EUROPEAN portfolio which we are going to start in the very near future. We will keep you posted!