Performance
YTD: 12.0%
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
  • Equities
    75%
  • Cash
    25%
CAN SLIM®
Strategy Overview:

The CAN SLIM® investment program is a tactical, long-term growth strategy focused on capital appreciation. The strategy invests in leading growth stocks as the market rises and scales to cash to preserve gains during market declines. Positions are managed (purchased and liquidated) through a combination of CAN SLIM® guidelines and a proprietary stock scoring system designed to build a comprehensive growth portfolio. 

Date Update
February 25, 2019

NorthCoast CAN SLIM® was among the top performers in Q4 2018 versus its peer group and recognized as a Top Guns Manager by Informa Investment Solutions' PSN.

“I’m proud of our investment team. 2018, especially the fourth quarter, was a challenging environment for many equity managers, and we’re pleased to see our flagship strategy achieve such a high honor.” - Dan Kraninger, NorthCoast President & CEO

Click the link here to read the entire press release

December 24, 2018

Cigna Corporation annouced a deal to acquire Express Scripts Holding Co. The deal was completed on 12/21/2018 to be paid out in cash and stock. Holders of ESRX will see the corporate action in process today and is expected to settle on Wednesday 12/26. For each share of ESRX, owners will receive $48.75 and 0.2434 shares of Cigna (Ticker: CI). 

For additional information please click HERE

October 24, 2017

Over the third quarter of 2017, the strategy was up 3.0% net of fees, while the S&P 500 Index was up 4.3%.

To better understand this quarter’s performance in the context of the broad market, we analyze the strategy’s attribution versus the S&P 500 Index. Strategy attribution analysis helps to break down CAN SLIM® performance relative to the index.

First, we consider the allocation of cash held in the CAN SLIM® strategy during the quarter. The average cash position was 18.3%, which had a total negative affect on our portfolio’s relative performance of -0.8%, as cash served as a slight deterrent on strategy performance with the index moving higher over the quarter. While cash helps protects 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 compare the strategy’s sector allocation versus the index. The largest allocation differences versus the S&P500 Index were overweight Information Technology and underweight Energy, Consumer Staples and Utilities. Overall, our sector allocation decisions had a +0.3% impact on the relative performance, as technology stocks outperformed the general index and the over exposure boosted returns.

Finally, we inspect the impact of stock selection within the sectors. This contribution was positive in Industrials and Consumer Staples while negative in Information Technology and Health Care. Together the stock selection effect was a negative contributor to the performance of the strategy with a -0.8% contribution.

February 1, 2017

Citrix first announced plans for the spinoff of its GetGo division in November 2015. Last July, an agreement was reached with LogMeIn(LOGM) to merge with GetGo immediately post spin off in a Reverse Morris Trust transaction. Citrix announced that shareholders of record on January 20 (which includes NorthCoast clients in CAN SLIM®) will receive approximately .1718 shares of LogMeIn on January 31 for each Citrix share owned. The final ratio will be based on the actual number of outstanding shares on the record date.  After the transaction, Citrix shareholders will own approximately 50.1% of LogMeIn.

More information on the split can be found here

*The spin off may impact how you view your portfolio in that Citrix (CTXS) spun off GetGo resulting in a reduction of the value of your Citrix stock in exchange for 0.1718 of LogMeIn (LOGM) per share owned of Citrix. This will adversely affect the balance of your account today by a negative of 0.40%, because the value of the new position is not yet being included into the current account value.  When reading your account performance today, you should increase the value by approximately 0.40%.  If you have more questions about the transaction, please reach out to your NorthCoast Advisor.  

January 15, 2017

The NorthCoast CAN SLIM® investment program returned a composite +3.0% in 2016, in an upward moving year where stocks grinded along until the November election propelled stocks to end the year on a mini rally. Click here for a full review of the CAN SLIM® strategy in 2016. 

January 12, 2016

The CAN SLIM® Investment Program aims to achieve two goals, both equal in their importance to long-term performance: 1) appreciate capital and 2) preserve capital.

The following report provides in-depth analysis into the successes and challenges of the strategy throughout 2015, important research into the mechanics of the strategy, and a brief outlook for 2016... Click here to access the complete report. 

September 1, 2015

As equities declined in August, CAN SLIM® experienced a pullback in line with the S&P 500. After the unexpected decline, CAN SLIM® sought to take advantage with purchases of AAPL, GS, and VLO.

August 10, 2015

For a strategy that aims to 1) appreciate capital while 2) protecting on the downside, finding a comparable fund or benchmark is challenging. In the following report, NorthCoast highlights appropriate methods when analyzing CAN SLIM® performance and breaks down the cost of playing defense in a full-market cycle. Click on the report below to review. 

July 1, 2015

Much like the majority of equities, CAN SLIM® slid in June. The strategy lags the benchmark YTD as its cash holding and stock selection hindered growth. The strategy aims to take advantage of the recent decline by adding exposure at attractive entry points.

June 30, 2015

After a disappointing quarterly earnings result in which the company stated a weak PC market hurt its business, Micron (MU) experienced a double-digit sell-off on Friday (6/26). As the stock crossed its designated sell-stop, the position was liquidated and removed from the strategy. President & CEO Dan Kraninger shares some thoughts.

June 16, 2015

“Merger talk in the health-insurance industry is heating up as firms grapple with the challenges and opportunities the federal healthcare overhaul has created. UnitedHealth (UNH) has reportedly approached Aetna about a takeover deal that would likely be valued at more than $40B.” – Seeking Alpha.

UNH is now +6% versus a +0% market (S&P 500) since the original purchase on May 1. On June 8, we increased our position in the holding from 2% to 4% based on positive indications of future growth potential.

June 2, 2015

With a quarter of the strategy in cash, CAN SLIM® relied on stock selection to outperform the S&P 500 in May. While stocks such as AA, DAL, and UNP hampered performance, EA, GILD, and UNH helped the strategy outperform the broad market for the month and move positive for the year-to-date.

May 4, 2015

With high valuations and weakening macroeconomic data, CAN SLIM® reduced almost 10% of its equity exposure over the month. Low-scoring stocks were sold either as weak performers or companies whose performance exceeded the benchmark and profits were locked in.

April 6, 2015

CAN SLIM®’s equity exposure and growth universe guided performance in Q1. The strategy added exposure during the January pullback and benefited from February’s rebound. The omission of mega-cap names (i.e. AAPL) diminished relative strategy performance against the general market, and enters the 2nd quarter with a close eye on earnings season.

March 3, 2015

After starting the month 91% invested, CAN SLIM® began liquidating positions to reduce exposure as market outlook slightly weakened in the near-term. The strategy rebounded from a negative January with select positions (e.g. C, ECL, TXN) posting double-digit gains for the month.

February 26, 2015

Hewlett-Packard (HPQ) missed analysts sales forecasts on Wednesday, causing a roughly 9% sell-off in the name.  However, with reports that the company is looking to acquire Aruba Networks (ARUN), ARUN jumped over 20% on the news and provided an overall boost to the portfolio. With the ncreased value in ARUN, the strategy is locking in profit and reducing exposure in the name. 

February 11, 2015

In an effort to reduce strategy beta in CAN SLIM®, the position in AMG (Affiliated Managers Group) was sold, as future growth potential weakened in the stock.

February 2, 2015

With a high equity investment level near 90% for most of the month, CAN SLIM® felt the effects of the broad market pullback.  So far earnings season has produced mixed results.  Examples are demonstrated by BIIB on the positive and MSFT to the negative.  

January 19, 2015

Why hold GOOGL?

 

Since original purchase on 8/27/14 in CAN SLIM, GOOGL is currently -11.6%.... Why still hold it?  The stock holds relative value as the recent pullback boosted its attractiveness and analyst sentiment remains positive with its annoucement to compete with big players like Verion/AT&T/Sprint in the mobile service provider community. 

January 8, 2015

Delta Airlines (DAL) took flight in 2014 as top-performing stock in CAN SLIM. Coming off near lows in October, the stock increased +60% in value to end the year +75% in the portfolio. The position was originally purchased on 1/2/2014. 

January 6, 2015

With a high equity investment level near 100% and a low at 65% invested, CAN SLIM® navigated a volatile yet positive 2014. Keeping in line with the S&P 500, CAN SLIM posts a double-digit gain for the 2nd year in a row as quality stock picking and improved risk metrics propel the strategy.

December 2, 2014

CAN SLIM® held an average 78% equity exposure level throughout November as U.S. equities continued to increase. The increased cash position weighed on performance but stocks within the strategy performed well overall.  Positions such as M, VIAB, and V were liquidated and replaced with BIIB and an increase to our GILD position. 

November 5, 2014

CAN SLIM® held its investment level during the October decline which aided in the rebound it experienced at the end of the month. As positions were liquidated at designated sell-stops, new positions were added at attractive entry points.  Weakness in technical and valuation indicators provided reason to decrease exposure moving into November. 

October 1, 2014

CAN SLIM® slightly retreated in September after reaching a new high in August. Almost fully invested throughout the month, the strategy felt the effects of weakening global equity performance in September.

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