Quiver Top Gov't Contractors
Invests in the companies that receive the most government contract income.
Fund
314.18%
vs
Benchmark
171.21%
*Vertical reference line denotes the end of simulated backtest data and the start of live performance data.
** Performance data is calculated using the average returns of all accounts with more than $100 invested in this strategy.
Fund Holdings
Fund details
Stats
3.08/5
Risk score
Max draw down (of range)
Daily Sharpe (of range)
Daily Volatility (of range)
Monthly Volatility (of range)
78.00%
Correlation to S&P (total)
Description
This strategy selects the top 20 recipients of government contracts, weighted by the values of the announced contracts. Each company's government contracts are measured with an exponential moving average to favor more recent contracts, while still weighing historical contracts. This portfolio is rebalanced at the start of every month.
Key Considerations
This strategy aims to identify a mix of blue-chip stocks and lesser known companies that have been receiving a large amount of awards from the government.
While the largest and most unique government contracts catch the attention of media outlets, the majority of contracts are out of the spotlight due to the magnitude of government spending. The top recipients of government contracts often times have numerous contracts that slip out of the public eye due to many contracts being perceived as "business as usual" and therefore fail to attract headlines. The use of an exponential moving average with a half-life calculation favors companies that have recently been awarded contracts, giving the edge to companies that have a long-standing relationship with government agencies.
Government contracts are filed under a company’s legal name, and are not mapped to tickers at the source. Because of this, there is a risk of mapping disclosures to the wrong company, or missing disclosures that are filed under a subsidiary or other name. While we have taken steps to mitigate this risk, it presents the possibility for erroneous data. This strategy invests in fractional shares when available. When not available, it will invest in the nearest (lower) whole number of shares. Please note that this number may be 0 if your investment in this strategy is sufficiently low, meaning our investment strategy advertised returns will be different from your returns.