Ursa Major Portfolio

As the saying goes, “There is always a bull market somewhere.” However, as any experienced investor will tell you, the inverse is also true! And it is the concept of “there is always a bear market somewhere” that drives the TopStock Ursa Major Portfolio.

In short, the TopStock Ursa Major Portfolio is designed to identify and participate in short-sale opportunities in stocks as well as other markets and asset classes.

The TopStock Ursa Major Portfolio represents the “worst of breed” companies of the market. These are the lowest rated stocks (in terms of earnings strength and company performance) in the worst performing sectors. However, it is important to note that the portfolio is NOT limited to stocks. In addition to shorting stocks, we have the flexibility to invest in inverse and leveraged inverse ETF’s that benefit from a decline in the price of the underlying index or asset class the ETF is designed to represent.

Ursa Major is a concentrated portfolio. Under normal conditions, we will hold just 10 “short” positions. However, this will vary dependent upon market conditions. For example, there are times when “a rising tide lifts all ships.” Thus, we will want to avoid shorting stocks during certain environments.

So, if you are looking for a way to hedge a portion of your long portfolio or play the other side of the market, the TopStock Ursa Major Portfolio may be for you!

Get Started with the Ursa Major Portfolio Today!

Let’s Talk Ursa Major Performance

The TopStock Ursa Major Portfolio performed incredibly well during it’s first test under fire – I.E. the major “credit crisis” bear market of 2008. Here are the results:

TopStock Ursa Major Portfolio
Performance Scorecard

Ursa Major

S&P 500
2008 +155.25% -38.49%
2009 -19.56% 23.45%
2010 -13.27% 12.78%

Cumulative +78.08% -14.36%
Ursa Major Outperformance
versus S&P 500

No, that’s not a typo. The TopStock Ursa Major Portfolio gained +161% during the Credit Crisis! And in all honesty, we do NOT expect this type of dramatic outperformance to continue. The once-in-a-generation destruction that took place in the financial sector made selling the banks and brokers short a bit like shooting fish in a barrell. However, we can pledge to always be on the lookout for the lowest rated companies in the worst performing sectors as well as short-term trades in ETF’s that benefit from declines in asset classes such as Gold, Currencies, Oil, etc.

How the TopStock Ursa Major Portfolio Works

The approach to our Ursa Major Portfolio is very straightforward.

1. We Do the Research
Every week the computers crunch the numbers and rank every stock in our universe in terms of earnings strength and company performance. What we are looking for in this portfolio are the LOWEST RATED STOCKS and the WEAKEST PERFORMING ETF’s.

Our system for determining a company’s earnings strength and performance includes hundreds of indicators and includes analysis of:

  • Earnings Estimates
  • Revisions to Earnings Estimates
  • Momentum of Earnings Revisions
  • Measures for Earnings Surprises
  • Upside Potential for Earnings Estimates
  • Company Momentum
  • Industry Performance

From there, our team painstakingly reviews each of the lowest rated stocks and ETF’s on an individual basis. We check out the charts from a technical perspective. We review Wall Street’s current research and brokerage ratings. While it takes an enormous amount of time and energy, the goal is to identify the positions that are most likely to head lower.

2. We Tell You Exactly What We’re Doing
Whenever we decide to make a change in the portfolio, we will send you a TRADE ALERT! via email detailing the move we are about to make in the portfolio.

3. We Publish our Performance
At TopStockPortfolios.com, we believe that performance is job # 1. And unlike so many newsletter services out there, we don’t hide our performance. Every week we will send a Portfolio Roundup which includes a summary of any changes that we’ve made as well as the current performance to the portfolio.

To sum up, we do all the legwork, we tell you EXACTLY what we are about to do and why, and then we follow it up with a performance summary every week.

Risk Management Strategies Are Built In!

We implement a disciplined cover/sell strategy because, as the saying goes, “sometimes the best offense is a good defense.” You see, we have no tolerance whatsoever for positions that go against us or are no longer weak from a chart standpoint. Thus, whenever one of our stock holdings moves into an uptrend or an inverse ETF moves into downtrend, or breaks through an important support/resistance zone — we simply cut the position, no questions asked.

While it may sound simplistic, this “bottom up” or stock-by-stock approach to managing risk causes us to automatically reduce exposure to market risk during difficult markets. And since one of the best ways to make money in the long run is to avoid losing big money in the short run, this approach is an easy way to protect your net worth during tough times.

What You Receive:

Before anyone becomes a member of our service, we feel it is important for them to understand exactly what they will be getting from us. So here’s a summary of the reports you will begin receiving once you’ve signed up for a free-trial:

Real-Time Trade Alerts – We send a real-time ALERT! via email BEFORE every trade we make. These live reports tell members EXACTLY what we are about to do and why we are doing it. And to avoid any conflicts, it is our policy to wait until after we have received the ALERT to actually enter our trades. Each ALERT! includes:

      • Company Name
      • Ticker Symbol
      • Limit Price
      • Position Size
      • The Reasoning Behind the Trade – We believe it is vital to understand the reason WHY a trade is being made

Weekly Round-Up – Every week we update members on trading activity, current holdings, and performance of our portfolio.

Daily State of the Markets – As a TopStockPortfolios.com member, you’ll receive our “Daily State of the Markets” market analysis and commentary each morning BEFORE the opening bell.

All the TSP Reports – In addition, you can choose to receive any or ALL of the following reports: (just click on the reports you’d like to receive in Your Account)

    • Breaking News – Up to the minute market news
    • Technical Talk – Stay on top of the key technical levels on the charts
    • What’s Driving Today’s Market – The key story of the day
    • The Big Picture Report – Stay in tune with major market cycles
    • Daily Stock Pick – Our pick of the day
    • Daily Focus List – The TopStocks we’re watching today
    • The 10.0 Report – The REAL “Best of Breed”
    • The Risk Manager Report – Understand the Risk/Reward environment
    • TSP Market Model Roundup – We quantify the current market
    • The Insiders Report – What are the “insiders” buying?
    • Daily Upgrade/Downgrade Report – Stay on top of stocks “in play”
    • Earnings Scorecard – Who “beat the street” and who “missed?”
    • The TSP 100 – The Ursa Major0 stocks (updated monthly)
    • The TSP Smart Sector Report – Keeps you in tune with market leadership
    • TSP IRA/401(k) Portfolios – TSP Portfolios for your long-term assets
    • Top Stories – Never miss an economic report or top story
    • TSP Sneak Peeks – See what’s inside of TSP portfolios

Do TopStockRatings Really Matter?

We certainly think so, but sometimes it is best to let the numbers do the talking. Below is a table showing the average annualized returns for each rating category, as determined by historical testing performed by one of the country’s largest independent institutional research firms.

For our short portfolios, pay close attention to the stocks rated 2.9 and below.

TopStock Ratings


9.0 – 10.0 +32.9%
8.0 – 8.9 +23.2%
7.0 – 7.9 +11.9%
6.0 – 6.9 +10.5%
5.0 – 5.9 +6.6%
4.0 – 4.9 +4.1%
3.0 – 3.9 +2.7%

2.0 – 2.9 -0.4%
1.0 – 1.9 -5.3%
0.0 – 0.9 -6.6%

Let’s Talk Price

The TopStocks Ursa Major Portfolio is a “pro level” portfolio that can easily replace your brok-er recommendations and those mutual funds in your portfolio. In short, you can be your portfolio manager for just $399 a year, which is less than $34 per month!

So if you are looking for an easy way to learn about “going the other way” in the market, be sure to give this service a try!

Try the Ursa Major Portfolio Today!