Institutional quality research on the general market, asset class analysis, potential mania list, government watch list, Top/Bottom Relative Strength Stock List
High Yield Portfolio:
Strategy made money for 27 (1993-2020) consecutive years with average annual return > 10% with a max drawdown of 12%
Uncorrelated Fund Portfolio:
Investments in commodities and alternative investments that have low correlation to traditional equities and bonds
Great combo with Reed’s Report.
Portfolio Strategy Letter (PSL) and Reed’s Report complements each other wonderfully. Part of the inspiration for Reed’s Report was to have both a live delivery of content and a forum to get questions answered from the PSL
The PSL total portfolio has returned approximately $22.3 per $1 invested since 1992
The PSL total portfolio has returned about $22.3 per $1 invested since 1992, a compound annual growth rate of around 12.68% and an average annual return in the low teens, but on a maximum drawdown of under 11%.
A real-time portfolio that has beat the market in terms of total return, but on a maximum drawdown so low is exceptionally rare in the newsletter and research business, particularly one with a 26-year real-time track record.
The PSL total portfolio is a mix of all of our strategies that we asset-allocate among. It includes strategies on long/shorts, global stocks, US stocks, forex, futures, macro, high yield, gold, commodities, and highflyers. It has achieved an average annual gain above 14%, and a compound annual growth rate of 12.68% on a drawdown under 11%, with 25/26 years profitable.
How has this strategy, intact and published since 1992, done live and in real time? Take a look!
One of the longest running strategies in MRG Research and PSL, launched in 1992, has been our diversified high yield strategy.
This is kind of like a growth and income fund, where we mix our market timing backdrop with trying to mix a portfolio of bond-related vehicles with stock related vehicles, commodities when trending, forex when trending, and even some longs and shorts. In many respects this is one of our simplest strategies and it makes potential changes about 10-12 times a year when PSL’s are published, although money managers can access it daily or weekly too.
Chart: The PSL Diversified High Yield strategy real-time since 1992 (red) versus the S&P (blue) - much more consistent annual gains, and much lower drawdowns smooths the path to investment gains.
How did the Global Stock Strategy perform in 2000-2002 and 2007-2009 during the largest two bear markets since the Great Depression?
In 1998 PSL editor Mark Boucher wrote the book Hedge Fund Edge, published by Wiley Publishing. In that book Boucher revealed a thoroughly researched new strategy, the Top 5 Rate/Relative Strength Strategy.
The book explained the strategy in detail and showed the performance of various components of it going back as far as the 1940’s. In 1998 we began publishing the Top 5 Rate/RS Strategy each month in PSL, and have continued doing so since, real-time, making it part of the Total PSL Portfolio mix of strategies from that point forward.
The strategy simply switches to 5 ETF’s respresenting different countries markets each month, and steps to cash when bear markets appear or partially to cash when bear markets threaten.
Blue line is Top 5 Rate/RS Strategy since publication in 1998. Red line is the S&P since 1998. The green line is another model we introduced later.
“Mark Boucher [PSL’s editor] is a top macro analyst I always want to pay attention to. I particularly would not want to be without his advice going into a cyclical peak in global stock markets as appears to be the backdrop developing ahead. Few Strategists protect the downside as well as he has done consistently.”
- Felix Zulauf, Barron’s Roundtable regular and Swiss Macro Hedge Fund Manager