Online social media giant Facebook, Inc. (FB) is a recurring favorite among Alpha Algorithm strategies.
Because of our focus on risk management, it is also a stock that you already have held on three separate occasions and were stopped out of for 10%, 15% and 10% gains, respectively. With the stock breaking out to new highs yesterday, and an astonishing 15 Alpha Algorithm strategies betting on the stock, I am recommending that you re-enter this position.
Founded in 2004 and headquartered in Menlo Park, California, Facebook, Inc. operates the world’s largest social networking site, with over one billion daily active users. Its solutions include Instagram, Messenger, WhatsApp Messenger and Oculus virtual reality technology.
Facebook vs. the S&P 500 year to date
15 Top Investment Strategies Betting on Facebook, Inc. (FB)
- Hedge Fund Alpha
Based on publicly available disclosures, successful hedge fund managers are investing in the stock.
- 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.
- 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.
- Value Tilt
Selected using a multi-factor modeling approach, this is a value stock designed to enhance portfolio risk/return characteristics.
- Goldman Sachs Hedge Fund Index
The stock is part of the Goldman Sachs Hedge Industry Index, which tracks an equal-weighted index of the 50 most-frequently held U.S. companies selected from the portfolios of hedge funds.
- 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.
- 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.
- Pure Growth
The company is part of a strategy that selects companies from the S&P 500 Index, based on three growth factors: current internal growth rate, historical earnings per share (EPS) growth and historical sales/share growth.
- Large-Cap Alpha Growth
The company has been chosen as part of an alpha-seeking index that selects and weights growth stocks from the S&P 500 Growth Index. The proprietary methodology uses price appreciation — among more traditional factors — and weights the constituents based on their respective growth scores.
- IBD Top 50
The company is a Top 50 stock based on Investor’s Business Daily’s proprietary trading formula to identify 50 stocks that meet one of seven different catalysts. The “CAN SLIM” strategy identifies companies with either fundamental (improving earnings or new product) or technical (upward stock move on strong volume) catalysts.
- Market Legend’s Pick
The stock is part of a strategy that replicates methods of a handful of legendary investors using 20-plus models built on fundamental valuation metrics, rather than technical factors.
- Capital Strength
The stock is part of a strategy that seeks to outperform the market by selecting companies based on the strength of their balance sheets, long-term debt ratios and return on assets (ROA).
- Broker’s Best
It is one of Raymond James’ selection of stocks expected to outperform the S&P 500 over either a six- or 12-month period.
- Exponential Technologies
The stock is part of a strategy that invests in nine different fields deemed to be vast growth “exponential technologies”: big data and analytics, nanotechnology, medicine, networks, energy and environmental systems, robotics, 3-D printing, bioinformatics and financial services.
- Billionaire Bet
The stock is one of 30 U.S. companies tracked in an equal-weighted index selected from the portfolios of 10 asset managers with a personal net worth of at least $1 billion.
Recommendation
Buy Facebook, Inc. (FB) at market today. Place your initial stop at $148.
I am holding off on a Facebook option recommendation today as the stock spiked in recent days.
Portfolio Update
Sincerely,
Nicholas A. Vardy
