Investment Approach

Stock Following® is a proprietary investment approach that allows active investors to reasonably expect getting an abnormal rate of return (known as “alpha”).

Strategic Tasks

The “ideal” strategy. In the first stage, the investor’s task is to create an ideal strategy – that is, to find the most effective way to solve the Stock Following® fund’s goals. To do this, the investor should first – abandon attempts to find a “ready made” strategy, and second, don’t try to create a universal investment strategy. Instead the investor should concentrate on finding the simplest solution.
The right game. In the second stage, the investor's task is to carry out the strategy. To this end, the investor create an office – the right infrastructure sufficient to achieve the fund’s goals and to protect both investor and his strategy from external factors throughout the Stock Following® fund’s lifetime.
The end of the game. Each Stock Following® fund is created to complete a specific investment project. After reaching the goal, the fund must be closed.


Treating investing as a business
Result orientation. The investment strategy should focus on the results, rather than cover the investor's seat (i.e. "better make mistakes by the rules ..."). The task is to beat the market, and not being wrong for the right reason.
The right game. At each point in time, investors should think about the right game, not profits. The game will take care of profits.
The principle of control. At each point in time, the investor should know "what to do if...". At no time should there be the question to “buy” or “sell.” If those questions arise, the strategy does not comply with the principles of Stock Following®.
The refusal to create a universal investment strategy
The principle of choosing investment instruments
The principle of having no profit targets
The principle capturing more than 100% of each significant trend
The right diversification. Diversification in active investing is carried out by using various investment algorithms, within a single investment strategy, rather than by increasing the number of instruments within one’s portfolio.
Hypothesis-driven investing. When establishing positions, an investor should formulate a falsifiable hypothesis, and then actively search for its refutation.
Staying ahead of the curve
The principle of saving 15-20% of paper profits in illiquid assets. Art, real estate, education (to always have a second chance).

My Stock Following®


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