We set ourselves the task of evaluating whether
tools developed on the 'Sell' Side for stock picking would work in the management of funds.
We successfully ran Telecomwatch model portfolio over almost 24 months
when the portfolio out-performed our
Telcomwatch index by 130%.
There were three separate phases.
1. Developing tools when the fund out-performed a falling market.
2. When the fund recovered sharply and consistently outperformed
the index during a rising market. During this period the fund was 80% plus invested. Decisions
were taken once a week on the level invested, the number of stocks
and the weighting in each stock.
3. The third period when no change was made
to the model portfolio when the portfolio drifted down with the market.
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