Small Cap
The Sapphire Star Small Cap strategy invests in domestically listed small capitalization stocks and ADRs that exhibit strong, sustainable, and improving fundamentals over time. The strategy focuses on investing in securities with asymmetrically favorable risk/reward profiles, while they are still inefficiently priced by the market relative to their potential upside. By combining quantitative fundamental analysis with a robust risk/reward assessment the strategy is uniquely calibrated to consistently identify investments capable of providing superior risk-adjusted returns over the long-term.
Mid Cap
The Sapphire Star Mid Cap strategy invests in domestically listed mid-sized company stocks and ADRs which have exhibited strong, sustainable, and improving fundamentals over time, particularly with regards to revenue and profitability. The strategy focuses on investing in securities with asymmetrically favorable risk/reward profiles, while they are still inefficiently priced by the market relative to their potential upside. By combining quantitative fundamental analysis with a robust risk/reward assessment, the strategy is uniquely calibrated to consistently identify investments capable of providing superior risk-adjusted returns over the long-term.
Covered Call
The Sapphire Star Covered Call strategies are based on the popular “buy-write” approach to investing in the equity markets. The buy-write trading strategy involves the simultaneous purchase of equity securities and the writing of call options on these same securities and the subsequent collection of the call premium income. The Sapphire Star strategies combine the innovative Sapphire Star Large Cap Core Tactical strategy with a buy-write option overlay. Because the U.S. markets are expansive, most stocks have monthly options, giving the strategies flexibility. The option selection process focuses on contracts that are “close-to-the-money” and seeks the highest amount of income possible (the target range is 0.10% - 1.00% per month). The expiration dates of the calls vary from 1 to 9 months for the “growth” portfolio and out to 9 months for the “income” portfolio. An objective of this strategy is to generate income (via the call premiums and dividends) and to limit the volatility of the portfolio. Volatility can be lowered due to the portfolio’s ability to hold higher levels of cash, up to 50%, when conditions warrant.