Oakford Park Wealth

Quality Equity Portfolio

Quality Portfolio IB Asset Management

The Quality portfolio is a portfolio designed to systematically deliver return and risk characteristics of large and mid cap quality stocks within the US equity market. The portfolio is implemented using a rules-based approach and offered at a relatively low cost.


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 quality characteristics have a greater chance of being included.


Allocation discipline
The portfolio targets an allocation of 300 long positions. Stocks with attractive quality ratios receive higher allocations, and return on assets and other earnings quality measures are considered when determining allocations. The portfolio seeks securities with strong fundamentals that are not excessively overvalued. 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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