QG Fund Update: Stock Trading & Fantasy Sports

randymoss

randymossWhile I was on vacation two weekends ago, the DTAYS Quantitative Growth Fund triggered buy signals some really cool stocks. While I recognize that it has absolutely no bearing on the profitability of the strategy, it is fun to watch the fun participate in some of the popular stocks that everyone is talking about.

As I have been watching those “cool” stocks over the past few weeks, I have noticed that the feelings are very similar to the times when I have drafted “cool” players for my fantasy teams. If you had Randy Moss on your fantasy football team in ’08 or Mike Trout on your baseball team last year, you know exactly what I am talking about. Certain players are just more fun to watch.

With that said, because the DTAYS Quantitative Growth Fund is a completely rules-based strategy, the coolness of a particular stock will not affect the fund’s performance. If FB crashes through the 3 ATR trailing stop, I have to sell it. There are no exceptions for coolness. Sorry, Fonz.

Overall Fund Performance

The Quantitative Growth Fund put in some solid work this week. One interesting thing that stood out was that the fund isn’t regaining ground as fast as it was losing it. When the fund took big losses a few weeks ago, it was fully invested. Since it was only 55% invested this week, the big gains only moved the overall numbers about half what they would have it if was fully invested.

Despite the handicap/safety net of only being 55% invested, the fund still made up some ground this week. The total value is currently sitting at $97,563.90, which represents a net loss of 2.44%. That means the fund made $1,477.80 this week.

Individual Holdings

After a great week like we had, the holdings of the QG Fund look just like you would expect. There are significantly more winners than losers, and the big winners are much larger than the big losers.

Here is what the 11 positions look like following the past week’s action:

qgfundholdings-021514

Stocks Leaving the Fund

Since this was such a productive week for the QG Fund, there were no exits to discuss. There are no positions that are close to the initial stop of 8%, and none of the positions came close to hitting the trailing stop this week either.

Stocks Entering the Fund

After a great week like we just had, I expected the entire IBD 50 to make the cut as eligible buys. Once again though, that wasn’t the case. Here are the ten stocks that did make the cut:

JAZZ, ANFI, ALXN, GMCR, DATA, SHPG, BIIB, ACT, KORS, and FB

After removing the stocks that are already held by the fund, I was left with the following six new entries:

JAZZ, ANFI, GMCR, DATA, SHPG, KORS

JAZZ will join WYNN as the only two stocks that have been owned twice by the fund. GMCR has made quite a roar with its recent performance, but KORS is the one that really excites me.

I have been interested in KORS since its IPO. I owned it a few years ago while I was trading a CANSLIM approach. I always believed that this stock was destined for greatness. I even wore a Michael Kors tie on my wedding day.

Of course, just like any good fantasy player, I cannot let my personal rooting for KORS to cloud my judgement in executing my strategy. I want to see KORS rocket higher with me on board, but if it triggers either of my sell rules I will drop it without hesitation.