YTD: 11.4%
Performance YTD result is an estimated percentage based on a model account and may not be performance of your account.
As Of: 06/30/2019
Market Exposure
  • Equity Exposure
  • Cash
NorthCoast Growth
Strategy Overview:

NorthCoast Growth is a tactical, long-term growth strategy focused on capital appreciation with a secondary objective of downside protection. The strategy invests in leading growth stocks during favorable equity environments and scales to cash to preserve gains when bear market risk is high. The strategy adheres to a flexible investment mandate that allows for allocation shifts that range between 0%-100% exposure to equities. Positions are managed (purchased and liquidated) through a proprietary stock scoring system designed to build a comprehensive growth portfolio.

Date Update
October 24, 2017

Over the third quarter of 2017, the NorthCoast Growth strategy was up 2.8% net of fees, while the S&P500 Index was up 4.3%.

Running an attribution versus the S&P500 Index, we generate three estimates of the impact on performance from cash allocation, sector allocation and stock selection.

First, we consider cash allocation for the quarter, which averaged 15.5% and had an impact of -0.7% on the relative strategy performance. This underperformance was due to the portion of the allocation not participating in the equity uptrend that continued over the course of the quarter. While cash helps protect assets in down-trending markets, it is a hindrance when equities rise. This is a strategic trade-off when utilizing a cash scaling technique. You can read more about the way we scale to cash here.

Second, we breakdown the largest allocation differences versus the S&P500 Index, which were overweight Financials and Health Care and underweight Energy, Information Technology and Utilities. Overall, our sector allocation decisions had a +0.02% impact on the relative performance. The small positive contribution was helped by a positive quarter for financials, but hurt by lackluster returns in domestic healthcare.

Finally, we inspect the contribution from stock selection. The contribution was positive in Consumer Discretionary, Consumer Staples and Industrials while negative in Financials, Health Care and Information Technology. The stock selection effect was a negative contributor to the performance of the strategy with a -0.6% hit to relative performance.

November 1, 2012

NorthCoast Growth seeks long-term growth with downside risk protection through the implementation of a repeatable 3-step process:

  • Aims to reduce volatility and mitigate significant loss by shifting to cash during market declines.
  • Participate in market growth by investing in top-scoring riskadjusted growth stocks.
  • Monitors daily risk controls such as volatility, industry exposures and sell stops.

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