General Rules for Oxford Club Trading Portfolio Taxable and Tax Favored Accounts

  • All new clients must complete our standard new client enrollment process which will include a unique Client Agreement for Oxford Club subscribers as well as a suitability questionnaire.
  • Any new buy/hold rating changes and/or safety Switch Alerts will be applied to each portfolio the day following an email alert was received from the Oxford Club.
  • Additional funds added to an account will be allocated by spreading the additional funds across all holdings at the account’s current weights. Withdrawals will be accomplished in a similar manner.
  • The custodian provides completed IRS tax form 8949 for taxable accounts.
  • Transfers of existing holdings will be immediately rebalanced to the current positions held in the model portfolio.

Additional Rules for Tax Favored Accounts

Unless advised otherwise, all tax-favored portfolios will be linked to Model #1 which is designed to keep the portfolio fully invested using all of the recommendations provided by the Oxford Club subject to the 4% maximum position size recommended by the Oxford Club.

For example, if there are 33 different buys on the Oxford list, each investment will hold a weight of 3% and 1% will be allocated to cash. Alternately, if there are only 20 buys on the list, each stock or ETF will account for 4% of the portfolio and 20% will be allocated to cash.

Stocks that exceed the 4% maximum position size will be sold down to that level each time an investment is added or deleted from the portfolios or anytime when one or more positions exceed 5%.

At account startup, client accounts will be invested at the current position weight of the model portfolio.

Additional Rules for Taxable Accounts

Model #2 is primarily designed to minimize capital gains taxes while maintaining enough cash in the account to invest in all of the recommendations provided by the Oxford Club over the course of a year. In order to accomplish this, the following portfolio trading rules will be adhered to:

  • At account startup, each “buy” rated stock will be purchased with an initial 3.75% allocation. Stocks listed as “holds” will only be purchased if and when they are subsequently moved to a “buy.”
  • Accounts will only be rebalanced annually to bring selective holdings back down to 3.75% maximum, or alternatively, at any time when there is insufficient cash to accommodate a new purchase recommendation.

This portfolio management strategy is designed to allow for the client to be invested in all current and future Buy-rated recommendations while minimizing taxable events or requiring subsequent infusions of cash. The result of this could mean that there will be times where the account will be holding a larger allocation of cash than the Tax-Favored accounts.

Please contact our portfolio managers for more information on this service or to obtain an investor enrollment kit. Make sure to request the Oxford Club Trading portfolio enrollment kit in your message.