For Immediate Release
Chicago, IL - August 28, 2018 - Stocks in this week's article are ICU Medical, Inc.ICUI , FTI Consulting, Inc.FCN , Aspen Technology, Inc.AZPN , Old Dominion Freight Line, Inc.ODFL and Illumina, Inc.ILMN .
5 Momentum Stocks Worth Investing In via Driehaus Strategy
Using the "buy high and sell higher" rule, Richard Herman Driehaus has created an investment approach. Investors with a higher appetite for risks could think of using this particular strategy. Using the Driehaus strategy, investors primarily invest in momentum stocks. The investment approach became quite a success, which eventually helped Richard Driehaus secure a place in Barron's All-Century Team.
Portfolios such as that of The American Association of Individual Investors ("AAII") proved that the strategy has the potential to offer high returns. AAII's portfolio, which was developed following the strategy, returned 13.5% and 18.1% in the five and 10- year time frames, respectively, compared with -1.1% and 4.2% returns for the S&P 500. Thus, investors with a high risk appetite may opt for this strategy.
A Look at Driehaus' Strategy
After a detailed study of the Driehaus' strategy, AAII concluded that it mainly focuses on strong earnings growth rates and impressive prospects to pick potential outperformers. While this strategy was made to provide better returns over the longer haul, companies with a strong history of beating estimates were also given importance.
"I would much rather invest in a stock that's increasing in price and take the risk that it may begin to decline than invest in a stock that's already in a decline and try to guess when it will turn around," Driehaus had said in an interview.
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