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Innovators Select Strategy

Strategy Dynamics

The Tone Capital Innovators Select Strategy seeks to identify companies focused on investing in the future today. We believe effective Research & Development spending plays a key role in determining tomorrow's disruptive companies. Our proprietary quantitative model employs a tactical rotation methodology, examining R&D spending among other fundamental and technical factors, and is analyzed for potential monthly rebalance. The model universe is the NASDAQ 100 constituents, encompassing the largest domestic and international companies listed on the NASDAQ exchange as ranked by market capitalization, excluding financial companies.

Characteristics

The INNOVATORS SELECT STRATEGY is an equity-based model investing in constituents of the NASDAQ-100 Index, selecting a concentrated portfolio of stocks based on factors, keying on growth and momentum characteristics. The INNOVATORS SELECT STRATEGY seeks to outperform the NASDAQ-100 Index.

  • Tactical allocation strategy
  • Investment horizon: intermediate 
  • Rules-based investment process
  • Disciplined model-directed trading
  • Rebalance frequency: monthly

The Nasdaq-100 Index includes 100 of the largest domestic and international non-financial companies listed on The Nasdaq Stock Market based on market capitalization. The Index reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. It does not contain securities of financial companies including investment companies.

The Investment Process

The NASDAQ-100 Index includes 100 of the largest domestic and international non-financial securities listed on the NASDAQ Stock Market based on market capitalization. The Index reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade, and biotechnology. The NASDAQ-100 Index has outperformed the S&P 500 Index 86.5% of the time and the Russell 1000 Growth Index 92.4% of the time on a 10- year monthly rolling basis.

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