Markin Earnings Boost
Account Minimum:
$100K
Model Inception:
11/1/2023
Mngmt. Fee:
0.75%
Inception:
11/1/2023
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Investment Objective
Long-term capital appreciation with alpha.
A Diversified Approach to Equity Alpha
Markin Earnings Boost is for investors who want to diversify their US equity holdings with elevated exposure to the next wave of stocks across all sectors that are structurally positioned to benefit from automation adoption in general and AI automation adoption in particular.
We refer to these stocks as long-term AI beneficiaries. They are distinct from near-term AI enabling stocks which are primarily technology sector only stocks.
The strategy prioritizes the selection of stocks that have yet to price in the expected long-term EPS (Earnings Per Share) boost from automation, thus representing a significant opportunity for investors to profit with alpha.
A Sector-Neutral Investment Approach
The strategy builds a near sector-neutral portfolio by investing in approx. 50 Russell 1000 stocks across all sectors with the largest estimated potential long-term EPS boost which we expect will largely come from AI adoption. The strategy utilizes an analysis that maps individual firm task and associated cost intensity with tasks that generative AI and related technologies automate.
We estimate the portfolio offers 3.8 times more long-term EPS potential than the median Russell 1000 firm, corresponding to significant upside potential for investors. The portfolio is constructed to have greater diversification with less top 5 and top 10 concentration than the R1000.
The strategy is actively managed and exposures to individual stocks will vary based on the evaluation of investment opportunities. These shifts in exposures are determined using fundamental analysis and quantitative models. Information that is evaluated to arrive at the strategy’s views includes, but is not limited to: earnings, cash flows, trend indicators, and growth forecasts.
Reasons to Invest
Opportunity to Outperform and Diversified Approach
The strategy provides diversified, near sector-neutral equity exposure with greater expected EPS upside potential than the Russell 1000 and with less concentration and downside exposure than the technology sector.
Not-Yet-Priced-In EPS Focus
The strategy seeks to outperform US equities with a systematic focus on stocks that have yet to price in the potential EPS boost.
Risk Management
The strategy takes a controlled amount of risk by construction. It is broadly diversified, seeking to benefit from ~50 moderate sized positions, rather than concentrated market-cap weighted bets.
* The materials contained on this website do not constitute investment advice or research and should not be viewed as a current or past recommendation or a solicitation of an offer to buy or sell any securities or to adopt any investment strategy. Past profitability is not indicative of future results.