Gerring Blue

The ownership of individual stocks can add considerable value for a broadly diversified asset allocation strategy.  This is due to the fact that selected stocks have demonstrated the ability to provide competitive returns relative to the broader market at a lower level of risk over long-term periods of time.  Owning individual securities also typically comes at a lower cost than owning mutual funds or exchange traded funds.  As a result, a dedicated allocation to selected individual stocks has merit when constructing an investment strategy designed to achieve long-term goals.  The Gerring Blue strategy is designed to achieve this objective.

A company’s stock must pass through the following multistage filtering process to qualify for consideration in the Gerring Blue strategy:


A rigorous fundamental, technical and behavioral analysis is conducted on the stocks that pass through the initial quantitative screen to identify specific stocks that provide the opportunity to both outperform the broader market as measured by the S&P 500 Index and generate a positive absolute return over time at a level of risk that is lower than the broader market.

The Gerring Blue strategy typically includes as many as 15 to 20 individual stock securities when fully invested.  Depending on market conditions or prevailing individual stock opportunities, the strategy may hold considerably less than this total with the remainder held in cash in order to protect against the risk of absolute or relative downside returns.

The Gerring Blue strategy has a target allocation of 40% in the standard Gerring Universal portfolio, which is explained in more detail at the following link.  The final target allocation at implementation is dependent on specific client circumstances and objectives based on returns expectations, risk tolerance, income needs and time horizon.

The Gerring Blue strategy may also be implemented for clients as a stand alone strategy.  It may also be blended with a standard core fixed income component for diversification purposes.