The Value Line Alpha Oriented Defensive Portfolio is suitable for investors whose primary interest is in achieving price appreciation potential without taking undue risk. To achieve these goals, all candidate stocks must possess certain defensive characteristics. Defensive characteristics are attributes of the equity that tend to reduce losses when the market trends downward or is volatile. The selected stocks must not only be defensive, but must also demonstrate the potential to generate long-term price appreciation.
This portfolio is constructed by selecting stocks with substantial price appreciation potential and favorable risk parameters compared to the portfolio’s benchmark.