New York – Every so often Integrity features a new research provider, a new product or a new methodology within the research industry. Today, we feature a new product from Columbine Capital Services call the “Pan-International Model” has recently been released. The principals Jack Brush and David Ament) are currently showing the model to prospective clients, first to their existing clients and then to others after that. Given that the results of the model are so compelling, they are pursuing a limited distribution model for their services, with only a few clients having access to the model.
Columbine Capital Services has been around for a long time, building models of the US markets and individual country models. The Pan-International Model overarches all countries and covers about 27,000 stocks outside of the U.S. market. The back-test results are impressive, with the top decile portfolio providing a better than 15.6% average Alpha from 1995 to 2009. Additionally, alpha was very stable and the top decile was always positive relative to the Dow Jones Global index.
The back-test was conducted on 2000 non-US names by market cap and included several strategies (a white paper will be released soon). One strategy was to buy the top decile stocks (ranked 1) and hold them until they fell to 4th ranked stocks. Over the 1995 to 2009 timeframe the strategy alpha was up 13.7% CAGR and posted a maximum drawdown of -5.8%.
Columbine indicates that the real-time model, which includes the 27,000 stocks outside of the US is producing results similar to the back-test thus far. For more information about the Pan-International Model and its results, contact David Ament or Jack Brush at 719 635 5174.