Portfolios (Authentic Assessment Toolbox)

Portfolio
FINAL PRESENTATION ON 7 WEEK PORTFOLIO- PASSIVE-ACTIVE
STRATEGY FUND

Name of the Fund
 The portfolio name has been given the Passive-Active Strategy
Fund.
 The Fund invests in stocks with a Passive Style of investment.
 The active style is incorporated in the portfolio when it is weekly
reinvested with new stocks.
 The stocks which have provided a return which is greater than
the benchmark index in a week are kept on hold.
 The stocks which perform less than the benchmark are sold.
 New stocks are incorporated in the fund in place of the stock
sold.
 Hence the portfolio is called Passive-Active Fund.

Holdings in the portfolio-weekly
 In week 1 the stocks which are selected for the portfolio is Apple,
Google, Amazon, Facebook. The American tower is the Reit selected
for the portfolio and the cash is kept in the Bank of America and TIPS.
 Thus the portfolio is concentrated in week 1 in technological and SAS
stocks.
 TIPS and Reit have been selected to provide slight diversification
benefit.
 In week 2, the stocks of Amazon, American Tower and TIPS have been
sold. This is because the return have been less than the return of the
Dow Jones Index.
 The portfolio is then reallocated with the stocks of A O Smith
Corporation and A 10 Networks Inc.

Holdings in the portfolio-weekly
 The money from the TIPS have been added to cash to maintain
liquidity in the portfolio.
 In Week 3, the stock of Aarons INC is taken in place of the A O
Smith.
 The company is related to providing goods on lease and even
acts as a retailer on many circumstances.
 The Fundamentals of the company appear to be good by
analysing the annual report of the company for the last three
years.
 The company seems to add diversification since it is not as much
risky as other companies while providing good returns.