This section will give a detailed synopsis of the fund allocation of our Investment Grade 1: Diversified Investment Fund categorized below:

A: Tracking Superinvestors: 50% of Investors’ Fund Allocation

 

At Infinity Wealth Advisory LLC, we track the portfolios of the greatest fund managers in the industry. We allocate 50% of your portfolio to tracking these “Superinvestors”. We track their quarterly filings and buy and sell based on investment decisions made by these fund managers. For instance, assume an investor invests $100,000; 50% of the total investment will be allocated to tracking Superinvestors, therefore $50,000 is allocated to mimicking the portfolios of these heavyweight investors.

 

We serially track seasoned hedge fund managers and their respective portfolios before basing our own long-term investment decisions:

 

1. Kenneth Griffin - Griffin is the founder and CEO of Citadel LLC, one of the largest hedge funds in the world. He has an estimated net worth of over $15 billion and is known for his expertise in investing in the financial markets.

2. Ray Dalio - Dalio is the founder of Bridgewater Associates, one of the largest and most successful hedge funds in the world. He has been listed as one of the 100 richest people in the world and is known for his expertise in macroeconomic investing.

3. Steve Cohen - Cohen is the founder of Point72 Asset Management, a hedge fund that manages over $20 billion in assets. He is known for his expertise in trading and has a net worth of over $15 billion.

4. George Soros - Soros is the founder of Soros Fund Management and is considered one of the most successful hedge fund managers of all time. He is known for his expertise in macroeconomic investing and has a net worth of over $8 billion.

5. Paul Tudor Jones - Jones is the founder of Tudor Investment Corporation, a hedge fund that manages over $20 billion in assets. He is known for his expertise in macroeconomic investing and has a net worth of over $5 billion.

6. Warren Buffet - The accolade of the greatest investor of all time belongs to Warren Buffet of Berkshire Hathaway, who has amassed annualized returns close to 12.5% for the past 30 years. There is no one better at selecting defensive stocks like Warren Buffet in the entirety of the financial industry. Berkshire Hathaway presently has an AUM of $296 bn. Furthermore, household names in the hedge fund industry Robert Atchinson of Adage Capital Partners, with an AUM of $40 bn; renowned short-seller, Michael Burry, Scion Asset Management, with an AUM of $50mn; Bill and Melinda Gates Foundation Trust, with an AUM of $34 bn; Bill Ackman of Pershing Square Capital Management, with an AUM of $7.8 bn; Ray Dalio of Bridgewater Associates, with an AUM of $19.75 bn.

 

On average, these top hedge fund managers return around 12% to 15% per annum, although some years they may return significantly more or less than that. Furthermore, renowned hedge funds charge a management fee between 2.5% to 5%, which Infinity Wealth Advisory LLC eliminates from our investment principles. Infinity Wealth Advisory LLC only makes money when the investor makes money. For instance, in the year 2022, Bill Ackman’s hedge fund produced a net return of -9% to investors. Therefore, we believe tracking one Superinvestor does not minimize investors exposure to risk, and therefore we track multiple Superinvestors with a multi-tiered hedging strategy.

For instance, assuming an investor invests $100,000, we immediately allocate 50% of the fund i.e., $50,000 to tracking Superinvestors. Thereafter, we allocate 10% of investors’ funds to the portfolios of our vetted Superinvestors, therefore $10,000 for instance would be allocated to tracking Ray Dalio’s portfolio. 

 

B: Long and Short Hedged Portfolio

 

The remaining 50% of investors’ funds will be managed directly by our team of expert researchers and in-house traders. The investment strategy will be jointly led by Dr. Saim Amir Faisal, PhD., and CEO of Infinity Wealth Advisory LLC and Mr. Antonio Nobile, Chief Investment Officer, Infinity Wealth Advisory LLC.

 

It is to be noted that both long and short trading strategies are used and the traditional buy and hold strategy does not apply to any of our trades. It is to be remembered that our loyalty is to profit generation and not to one particular security or asset class. Therefore, on occasions, security weightage may change, the same security that we deem to go long, we may serially short depending on changes to economic environment. It is to be mentioned that even Warren Buffet’s portfolio was down -50% during the Great Recession in 2008. In a situation of tremendous economic turmoil, we will have no hesitation to short securities or companies that we may previously have had great faith in.

 

We have outlined a breakdown of the holdings of securities that we will traditionally trade or in certain cases hold.

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Key Metrics of Fundamental Analysis

 

Fundamental analysis is quintessential to selecting securities that have the potential to deliver strong returns and stability over the long-term. The key metrics of fundamental analysis that we use to evaluate the financial health and growth potential of a company are outlined below:

 

1. P/E Ratio: The first metric we consider is the Price-to-Earnings (P/E) ratio. The P/E ratio is calculated by dividing the current stock price by the earnings per share (EPS). This metric gives us an idea of how much investors are willing to pay for each dollar of a company's earnings. A high P/E ratio may indicate that a stock is overvalued, while a low P/E ratio may indicate that the stock is undervalued. For example, if a company has a P/E ratio of 15, this means that investors are paying $15 for each dollar of earnings.

2. Free Cash Flow (FCF): Another important metric we consider is Free Cash Flow (FCF). FCF is the amount of cash a company generates after accounting for capital expenditures. It measures a company's ability to generate cash and reinvest in its business, pay dividends, or pay down debt. A positive FCF indicates a company's financial strength, while a negative FCF may signal financial trouble.

3. EPS: Earnings per Share (EPS) and EPS growth are also critical metrics that we consider. EPS is the portion of a company's profit allocated to each outstanding share of common stock. EPS growth measures the change in a company's earnings per share over a specified period of time. A company with strong EPS growth is typically viewed as a better investment than a company with weak EPS growth.

4. Net Income:Net income is another metric that we pay close attention to. Net income is the amount of money a company makes after accounting for all expenses. It provides a snapshot of a company's financial performance and gives us an idea of its overall financial health.

5. EBITDA:EBITDA, or earnings before interest, taxes, depreciation, and amortization, is another important metric that we consider. EBITDA provides a snapshot of a company's financial performance before accounting for various non-operating expenses. A company with strong EBITDA is typically viewed as more financially healthy than a company with weak EBITDA.

6. Revenue Growth:Revenue growth is another key metric that we consider. This metric measures the change in a company's revenue over a specified period of time. It gives us an idea of how quickly a company is growing its top line, which is an important factor in determining its overall financial health. A company with strong revenue growth is typically viewed as a better investment than a company with weak revenue growth.

7. Gross Margin and Net Margin: Gross margin and net margin are two other metrics that we consider. Gross margin is calculated by dividing a company's gross profit by its total revenue. Net margin is calculated by dividing net income by total revenue. These metrics give us an idea of how efficiently a company is generating profits from its sales. A company with high gross and net margins is typically viewed as more financially healthy than a company with low margins.

8. Profit Growth:Profit growth is another metric that we consider when evaluating a company. Profit growth measures the change in a company's profit over a specified period of time. It gives us an idea of how quickly a company's earnings are growing and provides insight into the company's financial performance. A company with strong profit growth is typically viewed as a better investment than a company with weak profit growth.

9. CAGR: Compounded Annual Growth Rate (CAGR) is another fundamental metric that measures the average annual growth rate of an investment over a specified period of time. It helps us to understand the rate at which a company is growing its earnings and revenue over time. For example, if a company’s CAGR over the last five years is 10%, this indicates that the company’s earnings and revenue have grown at an average rate of 10% per year over the past 5 years.

10. Dividend Growth:Dividend growth is another important metric that we consider. This metric measures the change in a company's dividend over a specified period of time. It provides insight into a company's ability to generate and grow its dividend, which is an important factor for fixed income-oriented investors.

Top of Form

 

 

 

Investment Grade 2: Dynamic Investment Fund

 

Minimum Investment Tenure: 12 months

Monthly Net Profits After Fees and Commission: 5-10%

Annualized Tentative Net Profit After Fees and Commission:60-100%

Maximum Drawdown: -30%

Minimum Investment: 5,000 USD

Currency: USD

Management Fee: 0%

Performance Fee: 50%

Risk Score: 7/10

 

The Dynamic Investment Fund is catered for investors seeking monthly returns and thereby significantly higher annualized returns. The fund algorithmically trades global indices, for example SPX500, NASDAQ100, DJ30; US and European equities, $GOLD, and the EUR/USD pair. However, it is to be noted, that these securities are traded with high frequency, and usually with leverage.

 

Forecasting Techniques: Time Series Econometrics with STATA and MATLAB

 

Forecasts are made using time series econometrics – multivariate time series regression analysis. Time series data is collected from Refinitiv.com for every second for the past quarter, and using notable parameters of influence in recorded data format, i.e. Federal Reserve Interest Rate, Unemployment Data and 40 other parameters of influence, a time series econometric regression analysis is conducted to deduce the economic and statistical linkages between the potential parameters of influence and asset prices. Using the results of regression time series trend, the price for the next hour, for the next 4-hour cycles are conducted. Multivariate variables are continually altered to look at the statistical significance of price alteration – and at often times, even weightage of variables is altered to grasp an accurate forecast for the subsequent trading day. Across all asset classes, the forecasting technique remains consistent. 

 

Technical Analysis Techniques

 

Technical analysis is a method used by many traders and investment firms to predict future price movements in the stock market. It involves the use of charts and various technical indicators to analyze past market data and make informed trading decisions.

 

Before our firm takes a trade in the stock market, a detailed technical analysis is conducted to make an informed decision. This process includes the following steps:

 

1. Chart Analysis: The first step in the technical analysis process is to examine the stock's price chart. This includes analyzing the price movements over a specific time frame, identifying trends and key levels of support and resistance.

2. Indicator Analysis: Next, various technical indicators are used to further analyze the stock's price movement. This includes indicators such as moving averages, Moving Average Convergence and Divergence (MACD), Bollinger Bands, and the Relative Strength Index (RSI). These indicators help to identify trends, measure momentum, and provide signals for potential buying or selling opportunities.

3. Trend Analysis: Trend analysis is an important aspect of technical analysis as it helps to identify the overall direction of the market. This includes analyzing trend lines, moving averages, and other trend-following indicators to determine whether the market is in an uptrend, downtrend, or trading range.

4. Volume Analysis: Volume is another important aspect of technical analysis, as it provides insight into the level of buying and selling pressure in the market. Our firm analyzes the volume data to determine whether there is strong buying or selling pressure and whether this is likely to continue in the future.

5. Pattern Analysis: Another key aspect of technical analysis is pattern analysis, which involves identifying chart patterns that may signal potential buying or selling opportunities. This includes analyzing patterns such as head and shoulders, triangles, and flags.

 

Once the technical analysis is complete, our firm then uses this information to make an informed decision on whether to take a trade in the stock market. The information gathered through technical analysis helps to identify potential entry and exit points, as well as to determine appropriate position sizes and stop-loss levels.

 

In conclusion, technical analysis is a critical component of our firm's trading process and is essential for making informed decisions in the stock market. The detailed technical analysis conducted before taking a trade helps to provide a clear picture of the market and to make well-informed trades based on solid market analysis.

 

Investment Grade 3: Stock Signaling Subscription Service

 

Monthly Subscription Service: $100

Annual Subscription Service: $1000

 

Download IWMPro+ App from the App Store or Google Play Store or alternatively directly go on the website for the subscription service and access the features. Enlist in the subscription service to receive daily stock signals, including portfolio management for long-term investors. For this product in particular, you can open your brokerage account with any globally regulated brokerage firm to trade equities, forex and commodities.