Garch's portfolio is designed for a balance between concentration and diversification based on market conditions. The investment thesis and the approach to constructing the portfolio tends to pick stocks with strong relative price strength that often times belong to an industry. Since one of the cohorts in the relative price strength includes the industry, the portfolio could be holding strong stocks within strong industries. This process at time leads Garch portfolio to hold between 35 (low end) to 65 (high end) positions within the portfolio with single stocks concentration cap at 6% and the industry cap at 20% of the portfolio.
Garch has a daily tracking of its positions against chart behavior, PNL movement relative to Gain/Loss thesis, verifying and maintaining an internal record of the stops by studing price level tests based on the application of Wyckoff methodology. During the end of week review, the stock's price objective is also checked based on the behavior of the stock and assessing the shifts in buying vs selling strength. While Gain Loss metric is applied at each stock level, this is also monitored at the overall portfolio level.
The Portfolio tends to maintain an average of 10% cash.