Portfolio Construction

Stansberry Asset Management believes in constructing simple, relatively concentrated portfolios that generally consist of no more than about 40 to 50 positions (for example, 30 US equities and 10 to 20 other securities), and are therefore digestible on a page or two.  We believe that significantly larger portfolios can be unnecessarily complex, and dilute the impact of our best ideas. We also believe in constructing portfolios that aim to be resilient to different economic and market outcomes, i.e., that seek to avoid strong “one way” bets.

The following diagram illustrates SAM’s portfolio construction approach. For more detail on current SAM portfolio positioning, click here.

The Five Factors in SAM Portfolio Construction

The Five Factors in SAM Portfolio Construction

For more on SAM’s approach to portfolio construction, please see Portfolio Frequently Asked Questions.