The Alpha Algorithm Picks a Fellow Alpha

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world.

Founded in 1998 and headquartered in Mountain View, California, Alphabet Inc. (GOOGL) is the parent of Google, as well as Google’s other internet interests.

The Google segment includes principal internet products, such as Search, Ads, Commerce, Maps, YouTube, Apps, Cloud, Android, Chrome and Google Play, as well as technical infrastructure and newer efforts, such as Virtual Reality. This segment also sells hardware products comprising Chromecast, Chromebooks and Nexus. The Other Internet Interests segment includes businesses such as Access/Google Fiber, Calico, Nest, Verily, GV, Google Capital, X and other initiatives.

GOOGL

Alphabet (GOOGL) versus the S&P 500 over the past three Months

Eight Top Investment Strategies Betting on Alphabet (GOOGL)

1. Fundamental Strength

Google is a top U.S. stock based on fundamentals measured by book value, cash flow, sales and dividends.

2. Value Tilt
Selected using a multi-factor modeling approach, this is a value stock designed to enhance portfolio risk/return characteristics

3. Hedge Fund Alpha

Based on publicly available disclosures, successful hedge fund managers are investing in the stock.

4. Momentum Factor

The stock also is one of the top 120 large- and mid-cap U.S. stocks exhibiting relatively higher price momentum, as measured by a specific factor which has historically driven a significant part of companies’ risk and return.

5. Hedge Fund Gurus

The stock is one of the top U.S.-listed equity positions reported on Form 13F by select hedge funds with concentrated top holdings.

6. Goldman Sachs’ Active Beta

The stock is selected according to four factors — value, quality, momentum and low volatility. These, in turn, are based on criteria including book value, sales and cash flow scaled by share price, profit/assets or return on equity (ROE), risk-adjusted returns and daily standard deviation of returns.

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7. Large-Cap Growth

The stock is among the top 50 large-capitalization U.S. growth stocks generated through a rigorous 10-factor fundamental screening process.

8. Alpha Growth

The company is part of a strategy that seeks to generate alpha based on companies selected from the S&P 500 Growth Index. The index uses price appreciation — among more traditional factors — and weights the constituents based on their proprietary growth scores.

Recommendation

Buy Alphabet Inc. (GOOGL) at market today. Place your initial stop at $730.00.

Given the current state of the market, I am holding off on making an option recommendation on this position for now.

Portfolio Update

You were stopped out of long-time holding McDonald’s Corp (MCD) at a loss when it hit its stop price of $113.00.

Despite the stock’s technical weakness over recent months, it is still held by eight Alpha Algorithm strategies.

Sincerely,

Nicholas Vardy

Nicholas A. Vardy

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