Technical Analysis of Financial Markets

JSPM-OMAHA Growth Model Portfolio Takes Flight

Hello again.

In the past few weeks I have been hard at work building my first portfolio model under the JSPM Brand. As of this week, the portfolio is up and running and the first several clients have been transferred in. The portfolio is an equity growth strategy designed to generate an above-average, risk-adjusted rate of return over time. Capital gains are the strategy’s primary objective. Some current income may be earned through dividends,but income is not a primary objective.

Longtime readers of Omahacharts are familiar with my beliefs around portfolio management. In short, find companies that are growing sales and EPS rapidly, and have institutional support at their backs. These companies are then added to a coverage list which I qualify as Diamond, Ruby, Sapphire, etc. Once covered, strict discipline is applied via entering and exiting positions. This is done using a quantitative technical approach which I have devised over the years.

I don’t want you to get lost in the weeds here, so in plain-speak: Our goal at JSPM with this portfolio is to outperform. For whatever reason that term “outperform” is almost taboo these days. At least where I come from. Outperform is NOT synonymous with risk. Not the way we manage money. We are active and use strict discipline for cutting stocks that move against us. I can love a company and believe in its long term growth, but if its stock isn’t acting well it’s getting cut. When it proves itself once more, I will look to re add. Plain and simple, we want to be in the stocks that are exhibiting relative strength that give YOU the best chance to make money over and above what is possible with a more passive approach.

It took me a long time to find someone who shared a similar view in how growth portfolios should be managed. I interviewed with a few big firms, none of which were a good fit so I decided I would go at it on my own. Between trading, analysis, marketing (I know next to nothing about this), compliance (thank God Ryan takes care of this), and client appointments, the task became overwhelming. Finding Ryan was pure luck, and I would like to think those who will be the luckiest due to our partnership are our clients.

If you don’t know now you know. We are off and running at JSPM LLC and are accepting new clients today. You guys know me but you’ve asked about Ryan. His bio is below. If I ever got out of this business altogether and needed someone to manage my own funds, it would be Ryan.

Back soon with more.

Trent J. Smalley, CMT