Free Trial
Print
PDF

What Are The Bloodhound Model Strategies?

Bloodhound is an investment system based on strategies, a set of rules that determine how stocks are selected into portfolios and managed on a daily basis.

Each strategy has been analyzed for 23 years, so that investors can see how consistent investing, using the same investment rules, performs in good markets and bad.

Users can build their own strategy out of Fundamental and Technical rules, or they can search among more than 500,000 combinations of strategy and portfolio sizes that we provide, or they can choose (and modify if they wish) one of up to 25 Bloodhound Model Strategies.

Once a strategy has been selected, it takes less than 30 seconds to create a portfolio based on the best current information, call your broker to buy the stocks selected! Once a portfolio is created, Bloodhound analyzes it against the strategy every night, telling you what trades, if any, are recommended.

The Bloodhound Model Strategies are grouped into categories by return and volatility (or risk). Almost all are one year buy-and-hold strategies, so they require little user intervention to manage. The usual measurement of risk is standard deviation, or beta; we add more measurements to our analysis because we find that beta alone does not convey the level of security that many investors want. Our categories are required to show a minimum average return both over the last 10 years and over the 23 years of our data. The categories and their minimum return are:

Conservative (8%); Moderate (10%); Growth (14%); Aggressive (18%) and SuperAggressive (25%). For each category we specify the following, all compared to the SP500 index: beta; the number of times the portfolio declined more than 5% in a year; the number of times that they lost value over one year; the number of times they experienced losses over multiple years. In every category, even SuperAggressive, the number of one year and multi-year losses is equal to or lower than that of the SP5000 index. For the other measurements, Conservative is lower than the SP500 index on all measurements; Moderate, Growth, and Aggressive are less than 20%, 40%, 60%  above the SP500 index figures; SuperAggressive is not limited.

Here is a summary of their performance compared with the SP500 index over 23 years, and to date for this year.

model performance summary