Kavout has developed several model portfolios based on vetted and established trading strategies and augmented with AI algorithms. In this article, we present an example of our Kai Enhanced Sector Portfolio (request factsheet here).
Kai Enhanced Sector Portfolio
The Kai Enhanced Sector portfolio gives full sector exposure and concentrates on stocks with the highest potential. The Kavout AI engine dynamically updates stocks ratings and generates new predictive analytics. The strategy automatically rebalances and optimizes holdings.
Kavout applies K Scores – stocks ranking based on quantamental analytics and machine learning models – to select an enhanced portfolio of stocks within the same sector to best capture the growth cycle of the sector. The Kavout AI engine performs asset allocation and dynamic rebalancing to seek maximum risk-adjusted returns.
Our methodology applies to all sectors. In the following example, we illustrate the performance of an enhanced healthcare sector portfolio and compare it to the healthcare sector ETFs. The chart below shows an example of how an enhanced sector portfolio is allocated across different companies.
Top Holdings (%)
As the graph below illustrates, the Kai Enhanced Healthcare Sector portfolio has consistently outperformed the healthcare sector ETF (XLV) since 2014.
To learn more about Kavout’s other portfolio offerings, please visit our model portfolio page. In addition to smart portfolio construction, we provide rating services for other asset classes, AI stock picks or recommendations, and algorithmic trading. Contact us to learn more about how you can incorporate our AI and Machine Learning technology into your business.