Oakford Park Wealth

Growth Equity Portfolio

Growth Portfolio IB Asset Management

The Growth portfolio is a portfolio designed to systematically deliver return and risk characteristics of large and mid cap growth stocks within the US equity market. The portfolio is implemented using a rules-based approach and offered at a relatively low cost. Stocks are compared against their sector peers, and those with attractive growth ratios receive higher allocations.


Research
A factor-based approach to portfolio construction is grounded in academic research. The goal is to achieve an alternative risk-return profile, which is more attractive than a simple capitalization-weighted index such as the S&P 500. 


Approach
The portfolio is constructed using a rules-based algorithm to determine position allocations. The portfolio is rebalanced quarterly and stocks exhibiting attractive growth characteristics have a greater chance of being included.


Allocation discipline
The portfolio targets an allocation of 300 long positions. Stocks with attractive growth ratios receive higher allocations, and both trailing and forward earnings growth measures are considered when determining allocations. Even if a company reports better than expected past results, analyst forward estimates are also important in determining attractiveness of the stock. As a form of risk control, the portfolio construction process is designed to penalize high volatility in stocks and avoid excessive concentration in single sectors of the market.

Fact Sheet
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