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AFG 50

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The AFG 50 is an actively managed buy list of 50 stocks, designed to outperform its benchmark (S&P 500) while remaining sector-neutral. The AFG 50 Portfolio serves as an outsourced research team, as our analysts monitor each major economic sector to provide our clients with actionable buy ideas backed by detailed models, reports, updates and a backup list for possible replacements within each sector. Anytime that there is a change made to the list, i.e., new stock, reiterated/change of add/drop recommendation or adjustments made to models, our clients are immediately notified via e-mail.

The AFG 50 was launched on June 10, 2004 at AFG’s inaugural client conference. Through December 31st, 2009, our clients have enjoyed the following performance:

The AFG 50 has outperformed the S&P 500 benchmark 5 out of 6 years with Cumulative Performance of over 1,500 bps.

• AFG50 and AFG100 are buy lists and results do not include management fees or transaction costs.

• AFG50 and AFG100 are re-balanced at end of each quarter to remain sector neutral vs. their respected benchmark, S&P500 and Russell 2000.

• Average Annual Turnover: AFG50 less than 20%, AFG100 less than 40%.

AFG 50:

• An actively managed buy list of 50 stocks, remaining sector-neutral.

• Long-only and targeting turnover of less than 40% annually.

Our Goals:

• To consistently beat the index our clients are most often measured against, the S&P 500.

• To serve as an outsourced research team, distributing relevant content to our clients on a timely basis.

• To provide consistent, actionable buy ideas in each major economic sector.

Here is a sample report from our AFG 50 buy list. The AFG 50 buy list provides institutional investment firms access to a devoted research team and investment process with the specific goal of consistently beating the S&P 500. The AFG 50 leverages our client’s investment process and enables them to focus on their core strengths. Below is a sample equity research report updating our thoughts on Gilead Sciences, Inc. (NASDAQ:GILD):


The Applied Finance Group

GILD Investment Summary:

Company Description: A biopharmaceutical company which discovers, develops and commercializes therapeutics in areas of unmet need.

Recommendation: Gilead Sciences, Inc. (GILD) is a biopharmaceutical company that discovers, develops and markets therapeutics that treat patients suffering from life-threatening infectious diseases, such as HIV, hepatitis B, and serious invasive fungal infections, as well as treatments for pulmonary and cardiovascular diseases. Additionally, GILD receives royalties for Tamiflu (marketed by Hoffmann-La Roche) for the treatment and prevention of influenza A and B, and Macugen (marketed by OSI Pharmaceuticals) for the treatment of age-related macular degeneration. GILD operates in North America, Europe and Australia, and partners with other drug manufacturers to distribute therapeutics in many underdeveloped countries around the world.

GILD earns the highest margins in the biotech industry, helped by a robust HIV franchise (80% of total sales). GILD’s patents do not begin to expire until 2015, providing an attractive product profile, compared to its biotech peers whose key products will expire within the next several years.

Our $64 target price suggests 49% upside. We initiate a Buy rating for GILD and will continue to hold it in the AFG50 portfolio as a core Health Care sector holding.

Recent Events:

• On August 10, GILD announced that it was closing two offices in Colorado and terminating 66 jobs there. About half of the employees were given the option to move to headquarters in California.

• On September 23, GILD received conditional marketing approval from European regulators to market Cayston (formerly known as aztreonam), a treatment for chronic lung infection in cystic fibrosis patients whose dosing regimen calls for 3x / day for 28 days. Cayston will be launched in some EU countries in early 2010.

• On September 25, the European Medicines Agency (EMEA) approved the use of Tamiflu on infants under the age of six months for the treatment of the H1N1 swine flu. The World Health Organization stressed the importance of early use of antivirals like Tamiflu at the onset of symptoms. 



 Click here to download and view the  entire 10 page report on Gilead Sciences, Inc.


Professional Money Managers, click here to register for a free trial of our AFG 50 Buy List.


 

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