Engine Conviction
15 stocks · monthly · free
The biggest gaps between Volaren's valuation and the share price, on the models we are confident in.
Backtest
N/A
YTD
+0.0%
Holdings
15
Live since
Sep 30
Rules
- Idea
- Each month it buys the fifteen companies whose published Volaren valuation sits furthest above the share price, among the models that passed review cleanly, giving more weight to the gaps we are most confident in. Our valuations can't be backtested honestly, so it has no backtest: its record is live from its first book.
- Universe
- Stocks listed in the US, including foreign companies (ADRs), with a published Volaren valuation whose latest review verdict is accept, with no reviewer or gap flag and no major flag on the valuation's own numbers.
- Must pass
- Worth at least $5 billion; an accounting-quality score of at least 60 out of 100; the comparable-companies and intrinsic values within 30% of each other; a valuation above the latest close by at most 50%.
- Ranking
- The gap to the close times our confidence in the model (lower when the two methods disagree or the model carries open findings).
- Holdings
- The top 15, in equal weights, re-selected at the first close of each month (a day later only when a held company's close has not arrived yet).
- Note
- Volaren's valuations can't be backtested honestly, so this record is forward only. Its record starts the day its first book was published and is never backfilled.
Who it suits
Investors who trust fundamental valuation and can hold names the market currently doubts.
Main risk
Valuation gaps can take a long time to close, and a model can be wrong about a company.