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The Intermediate Portfolio is Carnivore Trading’s way of putting quality stock picks in your hands and, in turn, putting money in your pockets. Each of these power stocks has been hand-selected by Trader Z for the purpose of long-term holding and growth. As always with Carnivore, the final choice belongs to you. Below the portfolio is a link to a detailed explanation of why we like the stocks, we hope you like them too.
How the System Works
Research by Hendrik Bessembinder, professor and Francis J. and Mary B. Labriola Endowed Chair in
Competitive Business at ASU’s W. P. Carey School of Business, evaluated lifetime returns to every U.S.
common stock traded on the New York and American stock exchanges and the Nasdaq since 1926. The
study found that the largest returns come from very few stocks overall — just 86 stocks have accounted
for $16 trillion in wealth creation, half of the stock market total, over the past 90 years. All of the wealth
creation can be attributed to the thousand top-performing stocks, while the remaining 96 percent of
stocks collectively matched one-month T-bills. This study assesses compound returns to over 64,000
global common stocks from 1991 to 2020, showing that the majority, 55.2% of U.S. stocks and 57.4% of
non-U.S. stocks, underperform one-month U.S. Treasury bills over the full sample. Further, the top-
performing 2.4% of firms account for all of the $US 75.7 trillion in net global stock market wealth
creation during the thirty-year period. Carnivore was built to find the 4% of stocks that drive the
Finding the 4% of stocks from the global stock market that drive returns can be like looking for a needle
in a haystack. However, with a process that focuses on following big trends and identifying industries
and businesses with exception growth characteristics, we have developed a methodology that works.
With the help of our decision support system (quantitative screening tools and computer models) we
have dubbed “Vector Nostradamus” we remove most stocks from even being considered. This makes it
easier to discover that 4%. We call is the “quantamental” approach to stock picking.
The Quantamentals approach is an investment strategy where human traders use the results generated
by data analytics, advanced screening software and machine learning to improve the performance of
their security selection. The process involves merging of computer power with human insight. The
blending of man and machine brings together the benefit of power of data as well as the huma
knowledge to identify some winning strategies that can be used for investing and earning maximum
returns. By combining the historical data and patterns and analysing the current market scenario the
investors try to identify the various trading signals so that they can make financial decisions more
confidently. It was created by combining fundamentals, technical, and quantitative methods or
approaches to buying various financial instruments such as stocks, bonds, derivatives, etc. Thus, it
combines the fundamental and quantitative approaches in during investing, with the objective of
earning maximum returns. It brings human insight and the power of computer together with the hope of
superior returns. Armed with huge and relevant data, investors hope to harness profitable investment
Our proprietary decision support system helps us analyze over 8,000 companies that are available to us
on the stock market on the basis of 100s criteria. It is the combination of years of piecing together
systems that work in real time in different market cycles to find the top 4% of stocks. Our team can then
dedicate their time to the best companies that have passed our stringent and systematic screening
process. The process of finding stocks that “are working” is done automatically. It is performed by VN,
whose screening criteria are dynamic. The screening process eliminates emotions and keeps us focused
on what is actually working in the market.
During the comparison phase, we go through the companies that survived the screening process with
our decades of research experience. At this stage, we are focusing on each company’s competitive
advantage and their prerequisites for maintaining this advantage. We find most companies have no
permanent competitive advantage. Around 100 companies a year are selected for in-depth analysis
During the in-depth analysis stage, our analysts dive deep into each company’s revenue model,
competitive edges, and competitors. Every single company at this stage is scrutinized based on the
company’s ability to make money 3–5 years into the future. We then compare our estimates with other
We only make 20-25 new stock selections every year. A company that is to be included in the portfolio
must be better than another pre-existing investment. These new investments are characterized by such
- - A strong track record of making money
- - High barriers to entry
- Clear competitive advantages and a time-tested revenue model
- A healthy balance sheet, preferably with zero debts
- - A suitably affordable price in relation to its expected money-making ability
We want to own high-quality revenue models mostly in US markets. We believe that investing in 20-25
companies provides us with enough diversification for an aggressive growth portfolio. We do not care
about stock market trends. The only thing that matters to us is the competitive advantage and money-
making ability of our chosen companies. We monitor such factors as their return on capital, the
development of their margins, the growth of their sales and continuous services, and the changes to
their competitive landscape.
- - Investments in 20-25 top-quality companies representing different fields
- Average investment duration: 1-3 years
WE DO NOT GIVE FINANCIAL ADVICE.
WE ARE NOT FINANCIAL ADVISORS.
NOTHING HEREIN IS TO BE CONSIDERED A RECOMMENDATION.
ALWAYS CONSULT WITH YOUR OWN FINANCIAL INSTITUTION FOR YOUR SPECIFIC
THIS SITE IS FOR ENTERTAINMENT AND INFORMATIONAL PURPOSES ONLY.
OUR COMMENTS AND THE INFORMATION IN THE COMMENTARY SECTION IN PARTICULAR
ARE PURELY OUR OPINIONS AND ARE NOT INTENDED TO BE RELIED UPON TO MAKE FINANCIAL DECISIONS.
OUR POLICY ALWAYS HAS BEEN THAT IF YOU ARE NOT HAPPY WITH OUR SERVICE YOU
CAN REQUEST A REFUND. WE MAKE NO GUARANTEES ON PERFORMANCE AND CAN’T DELIVER
INDIVIDUALIZED ADVICE. WE DO NOT MANAGE YOUR MONEY OR KNOW YOUR PERSONAL
SITUATION – BUT IF YOU ARE UNHAPPY WITH OUR SERVICE, LET US KNOW. WE ALWAYS
GO THE EXTRA MILE TO TAKE CARE OF THE CARNIVORE FAMILY.
CARNIVORE TRADING, LLC – IMPORTANT NOTICE
Carnivore is not a registered investment adviser and operates legally
pursuant to an exemption to registration for business and financial
publications. Nothing in these written materials and nothing we say to you
should be taken as personalized investment, legal, accounting or tax advice,
or a recommendation to buy, hold, sell a security. You should consult a
licensed securities professional before making any investment
Past performance is no guarantee of future results. Inherent in any
investment is the potential for loss. It should not be assumed that any
investment in securities, companies, sectors or markets identified and
described or discussed herein will be or were profitable. All information is
current as of the date of herein and is subject to change without
The Carnivore Trading Portfolio is a hypothetical portfolio that is
weighted and may use leverage in large quantities. These are not the returns
of an actual fund or portfolio of stocks. Your results may vary
significantly from the Carnivore Trading Portfolio due to many factors
outside of our control. You understand and agree that Carnivore is not
directing you as to what to buy or when or in what amounts, and that those
decisions are yours and yours alone (along with any licensed securities
professional you may engage) as are your results. You understand that
investing in the stock market carries risk of loss and that in no manner
have we led you to believe otherwise.