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PROTECT YOUR INVESTMENT PORTFOLIO & ADD VALUE

The most important part of my investment strategy is risk management. Most individuals and some professional money managers select their investments based on the potential gains. My first thoughts after selecting an investment is how much I might lose on this investment and what could be the worst case scenario. Accordingly, I select investments to outperform the benchmark, and design risk management strategies to protect the downside and to reduce your portfolio’s volatility.

To select stocks for the stock portfolio, the process relies on computer screening techniques using financial ratios (e.g., earnings), as well as technical indicators (e.g., moving averages of prices), and generates lists of qualified stock candidates. These financial ratios and technical indicators are back-tested and gradually added to the system.

For long or short positions, a well designed protective option strategy-- exemplified by the MAHAK Model of investing -- reduces the volatility of your portfolio, and improves its overall financial outcome.

The process has three steps:

Fundamental Analysis: I use computer screening procedures to develop a list of qualified stocks with strong fundamentals.

Technical Analysis: I use technical analysis to confirm my fundamental selections, and to design risk / profit management system.

Risk / Profit Management: I apply option strategies to protect the down side and/or take profits, and to reduce the overall volatility of your portfolio.