Investors and traders have different objectives - different risk tolerances,different time horizons. Our principle is that investors should have a multi-tiered strategy that gives them sensible exposure to the higher returns that are generated by well-selected stocks, while being able to insulate themselves against downside risk when the investment climate deteriorates.

We are strong advocates of sensibe hedging mechanisms for portfolios, and although our Model Portfolios will represent only the soundest companies in each 'selection set', we recognise the need to periodically hedge away market risk (usually by buying index put options or selling index futures) when faced with a decline in the investment merit of the broader market.

We maintain four Model Portfolios:

• Small Companies
• Mid-Caps
• Large Value
• High-Yield

We provide a weekly analysis of the portfolio performance for each portfolio, as well as the overall portfolio analytics (its overall PE, Yield, and other basic fundamental characteristics). There is also an assessment of both the investment merit and the technical merit  of the current market environment for each sector.

When our Dear Leader was Head of Equities Research at Australia's then-best independent stock research house, he implemented a highly systematic research process for the selection of Model Portfolios. That system was in place for over half a decade, and the Model Portfolios constructed using it outperformed their benchmarks and most professional managers, since inception.

The MarketMentat version is a revision and extension of the old methodology, to incorporate periodic hedging of part or all of the portfolio value when the overall market lacks investment merit and when market internals become unfavourable (i.e., when the market reaches a sentiment extreme).

MarketMentat receives no non-subscriber revenue from the Model Portfolios - there is no incentive for us to change the portfolio in order to justify an 'active manager' style fee (which can be up to 3% for a fund manager who actually hugs the benchmark like a limpet).

The historical results of our Model Portfolios are testament to our internal motto: over the long haul nothing will beat a set of sensible investment principles, diligently applied.

We are able to integrate sentiment, technical and fundamental approaches to analysis to arrive at a set of portfolios (and a set of periodic tactical and strategic protection strategies) which we believe will continue to outperform any active manager.