Here are a few questions to ask yourself:
1. Is my investment objective to protect and grow my assets?
Note that passive investing strategies (e.g. investing in a market index through an ETF, investing in “Smart Beta” funds, investing with Robo Advisors, etc.) may not be designed to provide adequate capital protection – ask your investment manager.
Passive investing may or may not provide future capital growth either, depending on how the particular underlying benchmark market index (or indexes) or other “black box” quantitative strategy performs.
2. Do I have a long-term investment horizon?
Having a long-term investment horizon involves accepting short-term underperformance. Not every individual will be comfortable with short-term underperformance. Accepting short-term underperformance will require a satisfactory understanding of the chosen investment strategy. acteve provides the tools to help form such an understanding, but not everyone will find it comfortable to challenge market consensus and pursue a contrarian value investing strategy.
3. Will my cash flow be affected due to short-term underperformance?
acteve’s strategy is to invest assets with a long-term orientation, accepting the fact that short-term underperformance can’t be avoided. If short-term underperformance will cause you hardship by affecting your cash flow, then acteve is probably not suitable for you.
4. Would I like to be a mindful investor?
Yes. Email firstname.lastname@example.org for details.
Yes. acteve’s portfolio construction and monitoring advisory service based on the acteve Model Portfolio (aMP), is designed to be provided to you either directly or through your existing financial advisor or other designated delegate.
Yes. The aMP (acteve Model Portfolio) is biased toward Tech Stocks, consistent with the industry focus described in Sundeep’s book. However, the aMP does not exclude non-tech stocks, and may feature a significant allocation to cash and bonds, depending on market conditions.
Importantly, the aMP is not designed to be a “Tech Portfolio” with the majority of assets invested in tech stocks.
acteve empowers individuals to manage their investment accounts on their own, at a broker of their choice, based on investment advice provided in a fiduciary relationship with acteve. acteve’s investment advice is based on the acteve Model Portfolio.
The acteve Model Portfolio (aMP) is designed to provide institutional-grade bottom-up portfolio construction and monitoring for the individual investor, in a simple and transparent way that is uncommon in the financial services industry. The aMP seeks to deliver capital protection and superior returns through a unique but well-defined process of mindful investing, based on principles of value investing and other ideas introduced in Sundeep’s book. acteve’s online research blog knowledgebase is available to access for FREE to anyone who can access acteve’s website. The research blog is designed to inform and educate existing and potential clients, and promote active discussion of individual company fundamentals as well as broader investing topics.
Sundeep Bajikar was a sellside Equity Research Analyst covering Technology stocks for nearly a decade. His individual stock recommendations over that period may be available as public information tracked by various third-party information processors. During his sellside career Sundeep served as trusted advisor to a broad range of mutual fund, hedge fund, pension fund, and other types of investment managers in the U.S., U.K., Europe, Japan, Hong Kong, Singapore, South Korea and Malaysia. Over that period Sundeep also served as trusted advisor to a number of senior executives of technology companies within and outside his direct research coverage.
Sundeep’s book titled “Equity Research for the Technology Investor – Value Investing in Technology Stocks” provides a few case studies of recommendations that worked, and others that did not work. The acteve Model Portfolio is based on the equity research process described in Sundeep’s book.
Click here for acteve Model Portfolio performance updates.
Past performance is not a guarantee or indication of future results.
An Equity Research Report provides specific recommendations for taking specific investment actions pertaining to specific stocks (equities) in a specified timeframe, generally as of the date the report is published. Such recommendations are represented by specific ratings (e.g. Buy, Sell, Hold) and price targets assigned to each stock that the equity research report pertains to. An equity research report typically contains charts, graphs, and/or a written description of the rationale behind the recommendation(s) being made in the report. Additionally, an equity research report provides a fairly comprehensive discussion of investment risks, as well as disclosures pertaining to potential conflicts or interest that the creators of the report might be subject to.
Equity Research Reports are most commonly issued by Equity Research Analysts employed by (or affiliated with) investment banks or broker/dealers. Equity Research Reports may also be issued by independent firms which are not investment banks or broker dealers, but have established appropriately compliant infrastructure allowing issuance of equity research reports. Publishing equity research analysts may be subject to restrictions related to owning or trading stocks related to equity research reports that the analysts have issued or will be issuing.
Issuance of Equity Research Reports is a strictly regulated activity in the U.S.A. and may be a regulated activity in other regions of the world. Regulatory requirements often change over time, and by region. Among other things, regulations may require Equity Research Reports to include 1) a clear recommendation to take a particular action with a stock in a timely fashion, 2) a comprehensive discussion of risks, 3) comparisons with a peer group or an applicable market index, 4) comprehensive disclosures of potential conflicts of interest, etc. Additionally regulations may require the process of producing and distributing Equity Research Reports to adhere to specific guidelines, which could change over time.
A purpose and goal of this website is to promote a process of continuous learning for individual investors, by helping individuals form a better understanding of how stocks are analyzed. acteve encourages individuals to seek help from capable, trustworthy and appropriately licensed professionals for selecting stocks to invest in. acteve also expressly discourages individuals from investing in stocks on their own without professional help.
Mindful investing involves being mindful of what you are investing in – simple to say but not easy to execute, without a well-defined process. Anticipating situations that are known to force investment mistakes, and consciously avoiding or mitigating such situations is part of the process. Following and promoting a mechanism for continuous learning and refinement of knowledge is also part of the process. Mindful investing takes advantage of judgment and intuition, capabilities that can’t yet be fully delegated to machines.
Also see: Are You A Mindful Investor?
acteve is based on a belief that increased transparency drives superior investment performance. There are many supporting arguments. Here are a few of them.
1. Execute Institutional Arbitrage
2. Promote Self-Reflection
Ravee Mehta in his excellent book “The Emotionally Intelligent Investor” suggests that investors should write a journal to aid in self-reflection. The acteve research blog is an open journal that clients can read.
3. Invite Constructive Criticism
acteve arms clients with tools to spot investment mistakes and help rectify them, perhaps before such mistakes are committed or repeated.
4. Anticipate & mitigate behavioral excursions
5. Refine knowledge & understanding of company/industry