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Matt Willson
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Founder of Pro-Folio.net Author of Pro-Folio newsletter - blog.Pro-Folio.net Former Series 7, 66, and 31 licensed financial advisor Former private equity analyst MBA in corporate finance from University of Texas (with honors)
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  • Starting an Evaluation of Quantzilla.com 1 comment
    Feb 7, 2011 10:58 PM | about stocks: CELL, UFS, POL, KLIC, HS, FLEX, ENTG, ART, ANN
     Quantzilla.com is a relatively new web site (copyright 2010) that claims to use a 20-dimension quantitative model to recommend individual company stocks to buy (and when to sell those that have been purchased). It costs $99/mo or $49/mo depending on which plan you choose.About Quantzilla
    Quantzilla has two models, "Pro" which maintains a portfolio of 10 stocks (equally weighted) and makes weekly recommendations to buy and sell; and "Basic" which maintains a portfolio of 15 stocks and makes monthly recommendations. 
    When backtesting their quantitative approach over the period 2001-2010, Quantzilla claims that their Pro model has generated average annual returns north of 60%, and their Basic model has generated average returns north of 20%. Frankly, these returns are truly mind-boggling if they are in fact accurate.
    My Evalation Portfolio
    So, I opened a free trial subscription and have decided to do my own evaluation for the education (and perhaps amusement) of my readers. I have devoted $10,000 of my own portfolio to the weekly Quantzilla Pro model, and I will share with you in future articles how it goes.
    Quantzilla's Claim
    The following chart outlines what Quantzilla claims to have achieved over 10 years of backtesting:

    Value of $100k investment since 3-31-01*
    Total Market Value$10,536,618.00
    Number of Positions10
      
    Total Return10,416.35%
    Benchmark Return (S&P 500)9.75%
    Annualized Return61.18%


    Annual Turnover1864.32%
    Max Drawdown-61.96%
    Overall Winners(1408/2251) 62.44%
    Sharpe Ratio1.39
    Correlation with S&P 5000.77
     
    The Max Drawdown of 62% is a bit scary, but when your average annual returns are over 60%, maybe it is tolerable.
     
    Stay tuned to this channel, and I will provide monthly updates on how my Quantzilla Pro portfolio is holding up. 
     


    Disclosure: I am long ANN, ARW, AVT, CELL, ENTG, HS, POL, UFS.

    Additional disclosure: I have no relationship with or beneficial ownership of QTEK Inc, the operator of Quantzilla.com.
    Themes: Portfolio Strategy, Stock Picking Stocks: CELL, UFS, POL, KLIC, HS, FLEX, ENTG, ART, ANN
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    How is the analysis coming? I have been considering the 30 day trial to check it out but thought you might be able to share first impressions after a month.
    20 Mar 2011, 06:56 PM Reply Like
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