The management of the PT model portfolio is focused on obtaining extraordinary total returns over the course of one full business cycle through investments that exhibit extraordinary reward-to-risk characteristics within a relatively short-term time horizon.
The strategies and management style that guides the management of the PT model portfolio are relatively aggressive, with a strong emphasis on identifying opportunities with highly attractive reward-to-risk characteristics, but which typically entail a high risk of capital loss. The time horizon for implementation of the overall strategy is one full business cycle, although it is generally expected that individual investments will tend to exhibit short-to-intermediate-term time horizons and holding periods.
The strategies implemented in the PT model portfolio are designed to complement the strategies implemented in the flagship Total Return Strategy (TRS) model portfolio. The PT model portfolio will generally be consistent with the overall long-term portfolio strategy outlook and investment framework that guide the TRS model port-folio. However, the PT model portfolio will tend to be focused on more aggressive strategies that capitalize on opportunities that exhibit extraordinary reward-to-risk characteristics within a relatively shorter-term time horizon.
The Proprietary Trading (PT) model portfolio is an educational tool that is designed to demonstrate in real-time how the research and analysis provided in Successful Portfolio Strategy is implemented in a real-life portfolio. To this end, the PT model portfolio discloses the exact positions and percent allocations of an actual portfolio that is owned and managed by James A. Kostohryz.