Formula investing

Formula investing

A formula-based investment technique in which investment decisions are made using predetermined timing or asset allocation models, e.g., dollar cost averaging.

Formula Plan

An investment strategy that calls for the buying and selling of securities according to a set formula. Both long-term and short-term formula plans exist, as well as high- and low-risk plans, but most rely heavily on previous market indicators. For this reason it is difficult to include a new issue of stock in a formula plan. Formula plans aim to eliminate personal opinions, emotions, and judgments from investing by never deviating from the formula.

Formula investing.

When you invest on a set schedule, you're using a technique known as formula investing. You're formula investing when you dollar cost average, or make investments to maintain a predetermined asset allocation.

One appeal of this approach, for investors who follow it, is that it eliminates having to agonize over when to buy or sell. It also encourages regular investing. But it does not guarantee your portfolio will grow in value or that you won't lose money.

References in periodicals archive ?
The proprietary quant strategy Formula Investing uses constructs client portfolios of value stocks with the objective of outperforming broad market indices over the long term.
Formula Investing is a money management firm that uses a unique, proprietary stock-screening system and a disciplined approach to manage portfolios of value stocks.
Formula Investing will typically purchase stocks for its client portfolios directly in a stock's originating country.
These new approaches represent the next evolution of Formula Investing and demonstrate a commitment to providing a suite of investing styles that help individuals and institutions invest in a known value strategy.
NEW YORK -- Formula Investing announced today the launch of four new separately managed account strategies, consisting of international companies for both individual and institutional investors, based on Joel Greenblatt's fundamentally-based quantitative value methodology of selecting stocks.
Speaker Joel Greenblatt, Co-Founder and Chief Strategist for Formula Investing LLC:
Formula Investing uses a system that determines portfolio selections through a logical and proprietary quantitative model that chooses stocks based on a combination of their relative cheapness and quality, as measured by earnings yield and return on capital.
While the firm believes investors should have a long-term focus when investing their assets through Formula Investing, there are no penalty charges for closing an account at any time.
Professionally Managed accounts allow an investor to establish a traditional, separately managed account and let Formula Investing make all of the investment decisions.
Formula Investing is an online money management firm that uses a unique, proprietary stock-screening system and a disciplined approach to managing portfolios of value stocks.
Formula Investing is dedicated to transparency and is one of the first registered online money management firms to allow clients to view their account holdings and portfolio performance online, on close to a real-time basis through a dedicated proprietary website.
Gotham Asset Management, LLC, based in New York City, is utilizing FundVantage Trust to launch its Formula Investing Funds, which comprise two U.