MAGNET® STOCK SELECTION System

The MAGNET® Stock Selection Strategy is a disciplined system for selecting those stocks that have the greatest potential for capital appreciation. The strategy starts with the statistical bell curve and the hypothesis that in every field of endeavor, the vast majority of participants are generally average or "normal", with relatively few "exceptions". The MAGNET ® Stock Selection System,blending our proprietary measurements of value, growth, and momentum investing, identifies these exceptions and captures their potential for exceptional returns.

Mr. Kimmel developed the MAGNET ® Stock Selection System while obtaining his undergraduate degree. Over the course of the study, over 70 students from three research universities were involved the research conducted. During his research it became evident that portfolio models based on linear regression or multivariate analysis failed to account for the behaviors of exceptional stocks. His research also proved that portfolios designed according to Modern Portfolio Theory and that were over diversified did not capture the opportunities available in a more concentrated free-market approach. Clearly, in their attempt to minimize portfolio risk, managers allocating assets according to Modern Portfolio Theory were also missing opportunities to capitalize on the performance of the best run companies.  

In response to these inefficiencies, the MAGNET® Stock Selection System was designed to watch reported company performance, listen to what is happening in the market and react to market opportunities. It does not try to predict what is going to happen based solely on past performance or macro economic indicators. The system, powered by years of research and development, identifies those company stocks that are more likely than others to perform - the exceptions at the tail of the bell curve.