New York (HedgeCo.net) The Pawleys Dividend Model is a long-only model run by Pawleys Capital Management and their CEO Kathryn Schwartz. The model is designed to provide investors with exposure to each of the ten major market sectors.The proprietary methodology focuses on dividend income, but also executes a deep-dive analysis of criteria including debt-to-equity, 5-year earnings growth, cash-flow, price-to-earnings, price-to-cash-flow, and overall brand value of the company.

The disciplined process is systematic, but does vary slightly from sector to sector, and places more or less emphasis on certain criteria based on prevailing economic conditions. The strategy invests primarily in the stocks of large capitalized companies, but may from time to time invest in smaller companies that pay dividends, and also taxable money markets and cash. The strategy does not borrow cash or securities, invest in derivatives, or use leverage of any kind.

The model is up 7.01% on the year with gain of 0.32% in the last 30 days while the overall market has been down. The standard deviation of 10.73 is among the middle grouping of fund manager models on the HedgeCoVest platform. The Sharpe Ratio of 1.0 is in the top quartile of the models on the platform. The correlation of 0.84 is pleasantly surprising for a long-only dividend strategy.

The allocation breakdown reflects the mission of the model with assets allocated to ten different sectors even with only 12 stocks in the portfolio. The 12 holdings represent one of the more concentrated portfolios on the platform, but the 7.01% YTD gain is the second best gain among the fund manager models.