Investment Strategies

AFS Investments employs several different Investment Strategies when it comes to managing Client’s monies. Some (but not all) are:

AFS Investments Growth Portfolio

The AFS Investments Growth Portfolio is designed for clients seeking long term growth of their investment assets. It is primarily invested in stocks and Exchange Traded Funds (ETFs) that trade on the major US stock exchanges. Stocks are selected by first looking at a particular company’s fundamentals. Items such as product or service, market penetration, competition, expected growth and projected earnings are taken into consideration. When a company passes muster, it is put into a “Watch Hopper” where its price movement is monitored for a buying opportunity. If, and when a stock hits a buy point, it is added to the individual client’s portfolio. From that point, it is monitored by the same criteria to determine a sale or hedge point. This type of strategy is commonly referred to as a “Bottoms Up” approach. When a group of stocks is moving in tandem, and the whole group makes sense to own, Sector ETFs are utilized.

AFS Investments ALPHA Sector Portfolio

The AFS Investments ALPHA Sector Portfolio is designed for clients seeking long term growth of their investment assets. It is invested in ETFs that make up the nine sectors of the S&P 500 Index. These sectors are purchased in allocations that are usually equal to the weighting of the similar sectors in the S&P 500. If a particular sector becomes oversold or overbought and presents an opportunity above its normal weighting, it can be over or under weighted in the client’s account. What is unique about the ETFs that are used in this portfolio is that they are created by using the original inventory of the 500 stocks that make up the S&P 500 Index, and then filtered through certain criteria, with the bottom 20% of the participants eliminated. Rather than performance being generated by 500 different stocks, it is created through 400 issues.

AFS Investments Fixed Income Portfolio

The AFS Investments Fixed Income Portfolio is designed for clients seeking long term income from their investment assets. Depending on the market cycle, asset classes used in this portfolio can be as basic as individual corporate, government or municipal bonds, or baskets of common stocks married to short call positions. The bonds create income through periodic dividend payments, whereas the stocks and options create income through the premiums received from selling Call Options against common stock holdings.


All of the above strategies carry inherent risks associated with the underlying securities utilized and market liquidity risks. Any strategy should be carefully considered before implementing.