Lutey Growth - CAN SLIM Investing PortfolioÂ
CAN SLIM Investing Style — Summary
CAN SLIM is a growth-at-the-right-time stock-selection system developed by William O’Neil. It blends fundamental earnings growth, price momentum, institutional demand, and market timing to identify stocks early in major advances.
The philosophy is simple:
Buy the market’s strongest growth companies before their biggest price runs, and only when the overall market supports risk-taking.
The paper emphasizes that CAN SLIM is not purely momentum-based. Instead, it targets companies with:
- Explosive earnings growth
- Strong price action near highs (not beaten-down stocks)
- Institutional sponsorship (but not overcrowded trades)
- Favorable market conditions
What Each Letter in CAN SLIM Means (Condensed)
From the paper’s description and implemented screens:
C – Current Quarterly Earnings
Strong recent quarterly EPS growth relative to other stocks.
A – Annual Earnings Growth
Sustained earnings growth over multiple years.
N – New (Catalysts / Highs)
Stocks making new highs or near highs, often driven by innovation, new products, or momentum.
S – Supply and Demand
Strong price performance indicates demand overwhelming supply.
L – Leader, Not Laggard
Buy leading stocks in leading industries.
I – Institutional Sponsorship
Stocks with meaningful—but not excessive—institutional ownership.
M – Market Direction
Only buy aggressively when the overall market trend is positive.
Invest in the Lutey Growth - CAN SLIM PortfolioLutey Growth - CAN SLIM: All U.S. Stock (NYSE/NASDAQ) Components
CAN SLIM Model — Highest Return, High Volatility Growth Engine
Return Profile
Total Return: 375.7% (vs 184.8% S&P 500)
Annualized Return (10-yr): 17.2%
Alpha: +10.2% to +21.0%
Upside Capture: 124%
Downside Capture: 141%
Risk Profile
Volatility (Std Dev): 20.4% (vs 16.6% S&P)
Beta: ~0.85
Sharpe Ratio: 0.75
Sortino Ratio: 0.97
Interpretation
Pure growth model designed to maximize absolute returns.
Strong upside participation with moderately elevated volatility.
Delivers massive alpha, but also experiences larger drawdowns during market stress.
Best Use Case
Core growth engine for aggressive investors.
Works extremely well when paired with defensive overlays or diversification sleeves.
Send me Free Passing Stocks
A real time $400,000 case study
The Lutey Growth 'CAN SLIM' portfolio applied to the SP500 components in real time February 2025. The passing stocks were held with a model $400,000 portfolio in portfolio123.com as a live forward tested study.
The performance of the model is 21.61% over the past 12 months (as of Jan 2026). The red line in the image below represents the growth of the portfolio from the initial rebalance in February 2025 during the last 12 months.Â
Lutey Growth: SP500 CAN SLIM Model
CAN SLIM Growth: 15–21% Annual Returns with half the Market Risk
15–21% Annual Returns
Beta ~0.60
250%+ Upside Capture
Growth Engine.
Market Shield.
Compounding Capital.
Outperforms S&P 500 with half the beta—rules-based CAN SLIM for advisors and clients.
CAN SLIM Growth Model: Efficient Equity Exposure with Reduced Market Sensitivity
The CAN SLIM Growth Model is designed for investors seeking systematic equity growth with materially lower market dependence, while maintaining strong long-term compounding characteristics.
Over the full market cycle from 7/1/2013 to 6/30/2023, the model delivered meaningful outperformance versus traditional benchmarks, achieved with approximately 60% market beta and volatility comparable to the S&P 500.
Key characteristics:
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Consistent excess returns: Annualized net returns ranged from approximately 15%–21% across 1-, 3-, 5-, 7-, and 10-year horizons.
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Sustained alpha generation: Alpha remained positive and stable across all timeframes, averaging ~9–11%, indicating returns driven by stock selection rather than market exposure.
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Low beta profile: Beta remained near 0.60, reducing sensitivity to broad market drawdowns.
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Competitive risk-adjusted performance: Sharpe and Sortino ratios exceeded those of the S&P 500 across every evaluated horizon.
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Strong upside participation with downside discipline: The model captured more than 250% of market upside, while materially reducing downside exposure during negative periods.
The strategy applies the CAN SLIM growth framework in a rules-based, quantitative implementation, removing discretion and emotional bias. Positions are selected based on earnings growth, price momentum, and market confirmation signals, and are dynamically managed as market conditions evolve.
For advisors, the CAN SLIM Growth Model offers:
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A transparent, repeatable growth allocation with reduced market beta
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A strong satellite or core-growth sleeve alongside traditional equity holdings
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A model that historically delivered growth-style returns without full equity risk
For clients, the experience is straightforward:
A disciplined growth strategy designed to compound capital while avoiding unnecessary exposure during unfavorable market environments.
A tactical weekly real time look at the Lutey Growth - CAN SLIM
The Lutey Growth 'CAN SLIM' model with weekly rebalancing. This significantly cuts the risk out of the portfolio by applying a tactical risk overlay.Â
This lowers the standard deviation of the portfolio from 23% to 17% while preserving the high return. It uses the passing stocks each week and decision for whether to be in the market or not to reduce exposure during market downturns and gain an edge during the market upswings.Â
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View the Model
Lutey Growth - CAN SLIM: All U.S. Stock (NYSE/NASDAQ) Components
w/ Weekly Tactical Risk Overlay
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271% Total Returns
Beta ~0.27
-65% Downside Capture
CAN SLIM Alpha.
Risk Compressed.
Compounding Capital.
14.4% annualized with massive drawdown protection—core growth for advisors and clients
High-Alpha Growth with Strong Risk Compression
Return Profile
Total Return: 271.3% (vs 184.8% S&P 500)
Annualized Return (10-yr): 14.4%
Alpha: +7.7% to +15.7%
Upside Capture: ~-35%
Downside Capture: ~-65%
Risk Profile
Beta: ~0.27
Volatility: 18.0% (vs 20.4% all-stock CAN SLIM)
Sharpe Ratio: 0.71
Sortino Ratio: 0.77
Interpretation
Tactical overlay materially reduces market exposure while preserving most of the growth premium.
Converts CAN SLIM from an aggressive growth engine into a risk-managed alpha strategy.
Sharpe improves despite lower raw returns.
Best Use Case
Growth investors who want CAN SLIM alpha with drawdown control.
Ideal as a core growth sleeve in advisor portfolios.
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