Algopick Main Focus Europe

Summary
European equities mostly, main focus on small and mid cap stocks (200m to 5bn market cap). Stock picking based on a quantitative screening model.

Investment process
The investment perspective should be long term. Stock picking is helped by a system ranking European stocks based on Quality (return on invested capital, margin stability, balance sheet strength), Valuation (from Price to Book, to Free cash flow yield and dividend yield) and Momentum (share price and earnings momentum). The model should help to identify the best stocks with a main focus on small and mid cap stocks. The portfolio shall be re-evaluated each month but should be monitored daily.

The portfolio should hold around 20 stocks with a target allocation of around 5% when they enter the portfolio, but the weight shall change with performance. Some positions shall enter the portfolio with a lower weight than 5%, based on perceived trading opportunity. Around 3 stocks or more may be outside of the 200-5bn market cap range, not in Europe, or not highly ranked in the model, based on opportunistic stock picking. show more