Portfolio Builder

Use Portfolio Builder to create investment strategies based on fundamentals data and top-tier research, back-test and adjust as needed and then invest in the strategy and tracks its performance within your existing portfolio.

To open Portfolio Builder

1.  From the Mosaic New Window dropdown, select Portfolio Builder.

Select a pre-defined strategy in the Portfolio Builder Library sidecar to get started, and then click the Customize button to modify settings. Or click Create New Strategy and then click the Edit Rules button to modify settings. In the sidecar setup page, define the Portfolio Builder specifications. Results are reflected immediately in the main Portfolio Builder page as you create your portfolio strategy.

Choose from pre-defined templates including:

Closely Held - The universe of equities for this strategy includes stocks that have strong balance sheets (where Total Long Term Debt/Total Shareholder equity for most recent period is under 50) and high insider ownership (over 20%), and is sorted based on equally-weighted ratings from all analysts. After sorting, the 10 highest-ranked of these stocks comprise the long portion of the portfolio, and the 10 lowest-ranked comprise the short portion. The investment amount you allot to the strategy is allocated using a long/short ratio of 130%/50%, and is set to rebalance monthly.

Growth - The universe of equities for this strategy includes stocks that are regarded as "Growth" stocks (with an Earnings Per Share change over the last 12 months greater than 5%) at attractive valuations (price-to-earnings ratio under 12), and is sorted based on equally-weighted ratings from all analysts. After sorting, the 10 highest-ranked of these stocks comprise the long portion of the portfolio, and the 10 lowest-ranked comprise the short portion. The investment amount you allot to the strategy is allocated using a long/short ratio of 130%/50%, and is set to rebalance monthly.

High Yield - The universe of equities for this strategy includes stocks that are regarded as "High Yield" (with a dividend yield over the last 12 months greater than 3%) at attractive valuations (price-to-earnings ratio under 15), and is sorted based on equally-weighted ratings from all analysts. After sorting, the 10 highest-ranked of these stocks comprise the long portion of the portfolio, and the 10 lowest-ranked comprise the short portion. The investment amount you allot to the strategy is allocated using a long/short ratio of 130%/50%, and is set to rebalance monthly.

Overvalued - The universe of equities for this strategy includes stocks that are regarded as "Highly Valued" (with a price-to-earnings ratio greater than 10) with strong performance (a year-to-date change greater than 10%), and is sorted by market capitalization. After sorting, the 10 lowest-ranked of these stocks comprise the long portion of the portfolio, and the 10 highest-ranked comprise the short portion. The investment amount you allot to the strategy is allocated using a long/short ratio of 130%/50%, and is set to rebalance monthly.

Define investment amount, universe and more.

Investment Amount and Long/Short Leverage -Specify an investment amount that will be used to calculate simulated historical performance, and then specify the percentage of that amount you want to allocate to creating long (up to 500%) and short (up to 300%) positions. Select Filter by Industry to display the Industry Filter. Specify industries to include in your hypothetical portfolio, and set limits on how much of each industry to include as long and/or short positions. Optionally define restrictions on all or specific stocks.

Universe - Define the universe of equities for the strategy to invest in by filtering by index and last price. Use the Add Additional Filters drop down list to choose from a myriad of other filter criteria including High/Low/Volume/History, Dividends, Fundamentals and Short Selling. Set a Minimum/Maximum range for all filters, and view the filter and min/max range graphically in the filter's histogram chart.

Investment Strategy - Sort the stocks in your investment universe by Market Capitalization, Analyst Ratings by top research providers, and more than 40 Other Criteria, four of which we select for you to get you started. Specify how the strategy should determine the long and short positions to include (i.e. go long in the top 10 ranked equities and short in the bottom 10), how positions should be sized and when to send a rebalance notification.

Backtest Settings - Set the time period over which back testing results are displayed and the index against which performance is charted. Elect to optimize the weight of positions based on highest return, lowest variance or highest Sharpe ratio, and the weight of ranking providers.

See results displayed in the tool to the right of the sidecar as you make your selections. Use the toggle switch next to the Simulated Historical Performance title to toggle the performance data display between percent of the initial investment and an absolute dollar value. Portfolio Builder scans are saved as individual tabs in the Monitor panel and in the scan library. You can close the scan tabs, but will always be able to open a saved scan at any time and recreate the tab from with the library. Edit the strategy at any time by selecting Edit Strategy at the top of the scan. Once you're satisfied with your investment rules and backtesting results, click the Invest button to create orders and invest in your custom portfolio. Once you've invested, the purple "H" badge changes to a green "I" badge.