Managed Accounts

Investment Philosophy

Validea Capital was founded based on the principle that the best way to outperform the market is to learn from those who have done so in the past. Our stock selection models are based on our interpretation of the published strategies of Wall Street legends. We believe that the fundamental strategies of some of history's top performing investment managers offer a foundation for superior stock selection, and implementing these techniques in a disciplined, unemotional and systematic manner can lead to long term market outperformance. We utilize our proprietary technology to leverage these experts' stock picking prowess, and follow a systematic investment process that eliminates emotion and bias, and focuses on long term outperformance

Our Portfolios

Our managed account portfolios range from all stock portfolios that seek to maximize long-term returns to reduced risk offerings that blend stocks with other uncorrelated asset classes. Validea Capital offers a separately managed account for each client and every one of our investors receives an individual consultation with John Reese regarding their personal investing goals and risk tolerance before any of their money is invested.

  Long Only Portfolios

Validea Capital's long only portfolios seek to maximize returns by selecting the top rated securities across a wide array of guru strategies and maintain 100% exposure to the equity market at all times. Our five core portfolios (Consensus, Select Blend, Top Gurus, Dividend Value and International) are appropriate for investors with above average risk tolerance and a long term time horizon. The Core portfolios are all managed with an intelligent tax management system, which seeks to maximize long term gains and tax efficiency. All portfolios are rebalanced on a 28 day cycle, which ensures disciplined and consistent active portfolio management and strategy adherence.


  Rotational Portfolios

Validea Capital's Market Portfolio combines our quantitative guru-based stock selection strategies with a technical system that seeks to limit losses by raising cash during major market declines. The strategy will shift in and out of equities based on a series of technical indicators. When invested, the Market Rotation portfolio will hold the top 50 stocks that obtain the highest scores from multiple guru strategies simultaneously. It looks to identify stocks that have a "consensus" from approaches with varying valuation, growth and financial strength tests. The portfolio is appropriate for investors with a long term time horizon who seek protection from market downturns.


  Reduced Risk Portfolios

Our reduced risk portfolios seek to limit volatility and produce more consistent returns by investing in a blend of distinct uncorrelated asset classes. Our Asset Allocation portfolio is a disciplined strategy, combining a diversified group of Exchange Traded Funds (ETFs) with exposure to our guru-based equity models and our market rotation strategy. This moderate risk portfolio is managed using a balanced system that offers exposure to a variety of asset classes in order to reduce portfolio risk and to offer more consistent returns over time. Our reduced risk Permanent Portfolio generally invests 25% in equities, 25% in long-term US Government bonds, 25% in short-term US Government bonds and 25% in Gold. These asset classes were selected based on the fact that they tend to be highly uncorrelated with each other, which helps to smooth the returns of the overall portfolio over time. Due to their focus on return consistency and reduced risk, our reduced risk portfolios can be typically expected to underperform an all stock portfolio during significant up market periods and to outperform a stock portfolio during significant down market periods. The equity side of the portfolios, when invested, will hold 50 stocks that attain high scores from multiple individual strategies and thus have "consensus" from approaches with varying valuation, growth and financial strength tests.