McAlan, Driven by Investment

Our expertise is in Systematic Momentum/Reversion Portfolio Management.
If you want your portfolio to capture the power of the momentum factor, this is the place for you!
Momentum is just half the story; reversion-to-mean is the complementary other half.

Our portfolios incorporate the knowledge of our sister company Channel Trend.  Since its founding in 1982, Channel Trend has harnessed the price behavior power of two inter-related forces: momentum and reversion-to-mean. Channel Trend’s stock selection system has garnered numerous awards and has been used by many of the world’s leading financial institutions. See www.channeltren.com.

Momentum investing is now widely recognized as one way, probably the best way, to outperform the S&P 500. However, the momentum models studied by academics and those used in indices, are naïve models, and do not take account of reversion-to-mean. Our models are richer and more fully developed than naïve momentum indices.

COMPLETE SYSTEM

It all begins with superior stock selection – and our track record speaks for itself.

While stock selection is important, it is equally important to know when to liquidate positions. Our system handles position exit systematically and mechanically (we remove any subjectivity from this decision).

Our model portfolios can be used to manage separate accounts or investment company portfolios.

Our system allows for daily adjustments to optimize performance based on market conditions.

Transactional accounting and valuation are done each day.

PERFORMANCE

Our objective is to deliver superior risk-adjusted returns—i.e. alpha. Our Combined Portfolio does just that. Net of fees and transaction costs, its annualized return from inception is 12% versus 8% for the S&P 500 benchmark, and its Sharpe ratio is 0.47 versus 0.37 for the benchmark.

Here are the performance statistics:


Performance Statistics

3 Years Ending
12/30/2016

Since Inception
On 12/31/2005

Compound Annual Return on Portfolio Equity

17%

12%

Compound Annual Return on the S&P 500

9%

8%

Sharpe Ratio for the Portfolio

1.06

0.47

Sharpe Ratio for the Performance Benchmark

0.66

0.37

Annualized Portfolio Volatility

16%

23%

Annualized Benchmark Volatility (SPX)

13%

18%

We look forward to clients and investors benefitting from our hard-won insights.

McAlan is a subsidiary of Finscitech LLC. “We put Science in Fintech”

To learn more, contact:
Allen F. Campbell
allen.campbell@McAlan.com
Tel. (307) 683-0694