|
I
speak regularly at Jyske Bank seminars which provided excellent
speakers who covered a wide range of subjects. One speaker
outlined Jyske’s VAMOS share selection system.
VAMOS stands for Value, Momentum and Strength.
Once
a week Jyske screens 7,000 stocks globally after the model
adjusts each company’s accounts to equalize differences
in accounting
standards.
Then
the system rates each share on a scale of 0 (lowest) to 10
(highest) for each of Value, Momentum and Strength. The
value exam
aims to find shares that have an attractive valuation, good price to
earnings, dividends etc. The momentum test looks for rising earnings
and the strength review looks for high quality businesses that Jyske
would want to hold for three years or more.
This
first analysis places all the shares into four quadrants
and the
bank then looks further at the upper quadrant where shares are cheap
and earnings are being upgraded. This dramatically reduces the number
of shares that get an in depth review and Jyske then does a due
diligence process on the shares offering the best VAMOS before
investing.
The
system has worked well. A test model was reviewed back through
1990 and found that 20% of the best-scoring stocks outperformed
their
market by 8% per annum. Based on this success, Jyske started its
Jyske Invest Favorite Equity Fund which has a portfolio of 30-35
stocks selected through the VAMOS process.
The results have been outstanding since the
fund began in 2003. Here
are the results:
| Year |
MSCI Return |
Jyske Favorite Fund |
Added Performance |
| 2003 |
10.395 |
13.95% |
3.02% |
| 2004 |
6.35% |
10.23% |
3.88% |
| 2005 |
15.33% |
29.51% |
14.17% (6 mos.) |
Jyske
Invest Favorite Equity Fund is only available for citizens
of
Denmark so Jyske Invest has now opened the Jyske Invest International
Favorite Equity Fund for clients outside Denmark.
You
can get ideas on this fund from Thomas Fischer at FISCHER@jyskebank.dk
Until next message, good global investing!
Gary |
