The H.E.A.T. Portfolio is comprised of the annual best investment ideas from the OptionsHawk Market Outlook that is a diversified portfolio of approximately 75 holdings with an expected one year time horizon for the investment. The core portfolio is a long-only strategy invested in the top ideas with a combination of growth & value while all holdings have many common attributes such as quality management, history of strong execution, best of breed in its industry, a defensible moat, and an attractive large and growing market opportunity. The strategy strives to have a turnover rate of less than 100% with its annual rebalancing which is also executed in the most tax efficient manner.  Securities will only prematurely be removed from the portfolio in a mid-year checkup if there has been a notable change to a company’s operations creating a less favorable risk/reward ratio, and we have a number of high quality holdings “on-deck” to step in.

Portfolio Options

The Core:

This core portfolio was designed for those who want to be invested in the best opportunities we find in our annual research and screening process without trying to time the market actively. We believe this is an excellent core equity portfolio option for all types of investors.

The Hedge:

This portfolio structure starts with the core portfolio above and adds a situational hedging component for up to 3% of the portfolio.  This proprietary situational hedging strategy will utilize put option hedges on major index ETFs when our proprietary signal is triggered.  This allows us to hedge out market risk at times we have found historically the most difficult for equities to outperform.

The Edge:

This portfolio structure includes the core and hedged components while adding research driven directional options trades that invests up to 7% of the portfolio into the OptionsHawk Spotlight Trades which will be executed after the Spotlight Trade Ideas are posted on OptionsHawk.com. These Spotlight Trades utilize a combination of fundamental research with technical analysis based price triggers with idea generation often derived from Institutional Options Flow signals. The trades typically look for 50% to 100% upside in three to six week windows, and also enforce strict technical price-based stop levels.

Account Details

Account Minimum:

$100,000

Brokerage and qualified retirement accounts (IRA Roth, SEP, Keogh) eligible as no margin used.

Management Fee:

1.50%   Core
1.75%    Hedge, Edge

Custodians:

Charles Schwab
Interactive Brokers