QVP In March

QVP beat the market again in March and at the same time recorded the best monthly return so far for 2016. After a rocky start to 2016 the market rebounded and QVP capitalized on that momentum as well with a return of 8.04 percent, in comparison to 6.60 percent by the S&P 500.


One of the reasons that it is heartening to see the market showing positive growth is that since QVP’s inception in 2005, our large-cap value strategy has outperformed the S&P 500 58.75 percent of monthly periods where the benchmark has seen positive returns.


A quarter of the way through 2016, QVP is currently up 4.00 percent in comparison to 0.77 percent by the S&P 500. Our strategy continues to outperform the market on a long-term consistent basis and offer excellent value to their portfolios, as illustrated in the table below:


Lifetime performance of QVP compared to our two benchmarks.


Listed below are the top five performing stocks in March for our QVP strategy:


5. AES (AES) +20.41%


The utilities company announced plans to further its operations around the globe, committing to invest at least $100 million in Argentina over the next couple of years after President Barack Obama met the Argentine President, Mauricio Macri.


4. ONEOK (OKE) +24.42%


The gas giant announced the completion of the first phase of the Roadrunner Gas Transmission pipeline project (Roadrunner) in West Texas at the start of March. The 200-mile pipeline connects ONEOK Partners' existing WesTex natural gas pipeline system near Coyanosa, Texas, to a new international border-crossing connection at the U.S. and Mexico border near San Elizario, Texas.


The company continues to develop new projects, mainly in Williston Basin, Permian Basin and other mineral-rich areas through ONEOK Partners, thereby expanding opportunities to grow its long-term fee-based earnings.


At the same time, ONEOK continues to control operating costs and has reduced contract labor, a trend that is expected to continue through 2016. Last year, the company was able to complete large maintenance projects significantly under budget, which will ensure the safety of its operations and provide reliable services to its customers.


3. Hewlett Packard Enterprise (HPE) +34.09%


Shares of Hewlett Packard Enterprise shot up at the start of March, after the company reported better-than-expected results in its first quarter since its spinoff from HP Inc., helping reaffirm the notion that companies that have been unshackled from their parent tend to outperform (supported by recent data from Goldman Sachs).


Meg Whitman, Hewlett Packard Enterprise’s CEO, announced: "During our first quarter as an independent company, we saw the progress that comes from being more focused and nimble. We delivered a third-consecutive quarter of year-over-year constant currency revenue growth, and excluding the impact of recent M&A activity, we saw revenue growth in constant currency across every business segment for the first time since 2010."


A regular cash dividend of $0.055 per share on the company's common stock was also announced.


Hewlett Packard Enterprise has had a bright start since its spinoff.


2. Encana (ECA) +42.36%


Despite Encana laying off employees across the company and in Colorado, their headquarters, the stock saw tremendous growth throughout March as oil futures rallied. The company has cut about 55 percent of its staff during the last two years.


1. Chesapeake Energy (CHK) +57.85%


Another energy company tops the list of our top five performers for QVP in March, and that following the death of founder and former CEO and chairman, Aubrey McClendon, in a car crash the day after being indicted for bid-rigging in Oklahoma.


Despite the tragedy, the jump in oil prices benefitted Chesapeake as well as energy companies energized the market in the latter half of March.

Aubrey McClendon was a pioneer in the field of fracking.

The graph below illustrates the month’s movements of our top performers:

QVP is also available through Prometheus, our new investment platform which seeks to offer people the opportunity to start investing earlier in their lives and to take back control of their financial future.

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Founded in 2007, Kruse Asset Management was born from a formulation model, designed to outperform the typical results garnered within financial markets. Building on that proven system, Kruse Asset Management employs a three-pronged approach to investment.

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