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The D.A. Davidson, or "DADCO," Portfolio is the Group's opportunity to compete directly with 20 schools across the U.S. The competition resets all accounts to $50,000 at the start of September. Any return generated in excess of 5% is shared equally between D.A. Davidson and the participating school. The one-year time horizon inherently lends itself to more risk than the Large-Cap portfolio. We attempt to identify securities we believe have been undervalued by the market or are priced at opportunistic levels. This is primarily achieved by identifying stock-specific catalysts.
OSIG placed 2nd during the 2022-2023 DADCO competition, |
Our DADCO StrategyThe DADCO portfolio is strategically positioned to make use of shorter durations in security ownership. With quarterly assessment reports being the structure of OSIG’s DADCO portfolio, rebalancing is naturally to be evaluated on a three month basis. Stocks may be held for longer periods if expected to continue to perform well, and in extreme cases of poor performance can be liquidated before three month’s time. My investment thesis emphasizes selecting stocks which rank highly in the deciles of quarterly EPS growth, revenue growth, cash flow growth, earnings surprise, and/or earnings streaks. Pursuant to academic literature, selecting among stocks with these qualities (or combinations thereof) will result in favorable expected returns for portfolios. With the consideration that the selection of upwards of 25 securities will (likely) render a portfolio into a market-based index fund, my thesis calls for 7-15 securities and a very limited cash position to optimize returns in a robust market marked by continuous record setting in the values of the major indices ” |
2023 - 2024 Competition (as of 11/26/2023)
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