The Portfolio Channel Insider Opportunities Investment Portfolio focuses on those stocks where the people who know the company best are buying - and buying heavily!

In his book, Investment Intelligence from Insider Trading, Nejat Seyhun, who just happens to be a leading researcher in the field of insider buying and selling, illustrated that when top executives bought large amounts of his/her company's stock, the stock outperformed the broad market by +8.9% over the next 12 months. And given that the long-term average annual return for the stock market has been +9.5% over he past 70 years, this means that stocks with heavy insider buying possess returns that are 93.7% better than the market itself. And then on the other hand, when an insider sold large amounts of his/her stock, Mr. Seyhun found that the stock underperformed the market by -5.4%, which is nearly 60% less than the market returns.

In addition, corporate insiders are often considered the "smart money" by Wall Street. For example, the research firm of Ned Davis Research reports that corporate insiders tend to be "relatively bullish at lows and relatively bearish at tops."

So, doesn't it make sense to (1) invest in stocks where the corporate insiders are buying and (2) avoid any company where the insiders are selling?

If your answer is "yes", then the Insider Opportunities Investment Portfolio may be just the ticket for you.

While the stock market can be challenging at times, the Insider portfolio strategy has proved successful in most every market environment. For example, according to our research, those stocks where corporate insiders were buying heavily have returnd +27.7% per year since early 1992, which is nearly three times the the buy-and-hold return of +9.86%. In addition, our portfolio of insider stocks actually went up handsomely during the brutal bear market of 2000-2002.

And here's one of the best parts - managing a portfolio focused only on stocks where the corporate insiders are buying heavily, really isn't that hard as it only takes about 15 minutes a week to stay in tune with our portfolio.

How the Insider Opportunities Investment Portfolio Works

The strategy is easy to summarize: Instead of owning the biggest companies in each sector - as the S&P 500 Index does - our plan is to own ONLY those companies in which the corporate insiders are buying - and buying heavily.

Every week the computers scour the available research on insider buying and then create a customized "insider score" for each and every stock. Next, we create a list of all the stocks with the highest insider score (the top 20%). From there, our team painstakingly reviews each of the top ranked "insider stocks" on an individual basis. We check out the charts from a technical perspective. We review our rating for Earnings Strength. And we check our long-term fundamental models. While it takes an enormous amount of time and energy, the goal is to identify the top rated stocks where those in the know just happen to be buying - and buying heavily!

The Insider Opportunities Investment Portfolio also has a built in risk management system. Each position in the portfolio is carefully monitored on a daily basis. If a position enters a downtrend or “breaks down” on a technical basis, we cut the position – no question asked.

In addition, when our market risk model indicates that the risk of a major decline is high, we will hedge our equity exposure via the use of inverse-ETF’s which are designed to increase in value when the market falls.

To sum up, only those stocks with the strongest performance, the top earnings strength, and the best insider ratings "make it" into our Insider portfolio.

Let's Talk Performance of Insider Buying

It is said that the proof is in the pudding. So we thought we'd share the results of our strategy. Below is the performance of the Insider Opportunities Investment Portfolio from the inception of our strategy on 12/15/2008 through the date shown.

Note: Investments in equities carry an inherent element of risk including the potential for significant loss of principal. Past performance is not an indication of future results.

As you can see, even during difficult markets, buying the stocks that corporate insiders are buying heavily (and then watching them like a hawk) has been able to dramatically outperform the S&P 500.

Testing the Insider System

Before we decided to go "live" with this concept, we hired the largest institutional research firm in the country to conduct an independent test of the system. The test found that by making small adjustments to the portfolio each week, the system had exceptionally impressive results.

Between March 6, 1992 and September 30, 2008, which was a period that contained three of the greatest Bull Markets of all time and one of the worst Bear Market in a generation, the strategy would have produced a compound average annual gain of +27.7% per year. (At that rate money doubles every 2.6 years!)

Do Insider Ratings 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.

We Tell You EXACTLY What We're doing

Every week, we send members a TRADE ALERT detailing the changes that we are making to the portfolio. It's that simple. We tell you what we're buying and what we're selling.

We Publish Performance

At PortfolioChannel.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 update the current performance to the portfolio.

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

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:


• Action (Buy or Sell)
• Company Name
• Ticker Symbol
• Position Size

Daily State of the Markets - As a subscriber, you'll receive our "Daily State of the Markets" market analysis and commentary each morning BEFORE the opening bell.

Risk Management Strategies Are Built In!

As the saying goes, "sometimes the best offense is a good defense." So, in addition to a powerful stock selection strategy designed to outperform by a wide margin in Bull markets, The Insider Opportunities Investment Portfolio also has a risk management strategy built into the portfolio for when the Bears begin to growl.

Our disciplined sell strategy is actually pretty darned simple. You see, we have no tolerance whatsoever for stocks that are not technically healthy from a chart standpoint. Thus, whenever one of our holdings moves into a downtrend or breaks important support -- we sell the stock, 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 bear 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 bear market periods.

Let's Talk Price

The Insider Opportunities Investment Portfolio is a "pro level" portfolio (we know for a fact that professional money managers use this exact approach to manage client accounts) that can easily replace those closet-index mutual funds in your portfolio. And instead of paying asset managers 2% of your portfolio, you can run your own privately managed portfolio for just $39.99 a month!

So if you are looking for an easy way to invest the exciting world of insider stocks, be sure to give this service a try!

The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Stocks should always consult an investment professional before making any investment.