Portformulas® manages quantitative mechanical methodologies and models for investors, operating pursuant to “Limited Discretionary Authority” engaging solely in the implementation of one or more step-by-step investment strategy qualification criteria and account rebalancing as indicated and selected by each investor.  We generally refer to this activity as a Portformula® Investment Strategy.

We use the selected Portformula® Investment Strategy qualification criteria to eliminate human emotion from the stock selection process. We execute the Portformula® Investment Strategy qualification criteria as the strict quantitative methodology and model for investing within each investor selected Portformula®. You can always identify exactly what stocks you own inside your Portformula® Investment Strategy, unlike many traditional “human” money manager directed portfolios.  Each Portformula® will only accept stocks that specifically meet the step-by-step qualification criteria & investment strategy. Based upon the criteria, it may be possible that no stocks will qualify during a given period of time. This may result in a Portformula® maintaining a full cash-position, but generally only for short periods of time.

Each investor’s account is established with a minimum 2% cash position and a 98% equal-weighted fully invested position, calculated to the nearest share. All dividends are reinvested and this ratio is updated upon each rebalancing and reapplication of the Portformula® Investment Strategy qualification criteria.  Every Portformula® provides full liquidity and 24/7 online account information for each investor.  Portformulas® reserves the right to make adjustments or changes in the criteria, ongoing management, and implementation of each Portformula®; however the general investment philosophy of a Portformula® will not change.  Our goal is to maintain the integrity of the general investment philosophy as described in the specific investment strategy criteria.  Such efforts may be open to interpretations, opinions and adaptations in order to create and maintain a real life mechanical investment methodology resulting in the Portformula®.  These philosophical interpretations, opinions, adaptations, methodologies and implementations may differ and have not been independently verified.