// strategy template
Turnaround
Beaten-down businesses with a survivable balance sheet and a real fix underway.
// the lines that end the argument
One criterion is hard: fail it and the score is capped no matter how well everything else scores.
- Interest coverage ≥ 2.00
What gets measured
| Criterion | Needs | Weight |
|---|---|---|
| vs. 52w highDistance from 52-week high (0 = at high, -0.2 = 20% below). | ≤ -30.0%partial credit to -23.0% | 15%Missing: the criterion is skipped and its weight is dropped. |
| P/BPrice to book value. | ≤ 1.50partial credit to 2.00 | 13%Missing: the criterion is skipped and its weight is dropped. |
| Interest coveragehardEBIT over interest expense. | ≥ 2.00partial credit to 1.50 | 15%Missing: the position fails without it. |
| Current ratioCurrent assets over current liabilities. | ≥ 1.00partial credit to 0.85 | 10%Missing: the criterion is skipped and its weight is dropped. |
| FCF yieldTrailing free cash flow over market cap. | ≥ 4.0%partial credit to 2.5% | 13%Missing: the criterion is skipped and its weight is dropped. |
Weight is each criterion's share of the whole rule-set, rounded for display. Every figure here comes from the same file the product scores with - the page cannot say one thing while the terminal does another.
What needs judgment
Credible turnaround plan
20%New management, cost program, divestitures - concrete steps with dates, not hope.
Balance sheet runway
15%Can the company fund the fix without dilution at the bottom?
These are the criteria a formula cannot settle. The AI judges them against the guidance above and shows its reasoning next to the verdict; the arithmetic stays with the deterministic rules.
Rules about the portfolio, not the stock
- No single position above 6% of the portfolio.
- No sector above 30% of the portfolio.
- At most 15 holdings at once.
These are checked against the book as a whole. A holding can clear every criterion above and still put the portfolio in breach by being too large.
Before you take it as given
This rule-set is a starting point. The moment a portfolio applies it, every threshold, weight and hard line is yours to move - and most people should move them, because the thresholds that make sense for a concentrated book are not the ones that make sense for a wide one.
It has not been backtested and Monsa does not claim it works. What Monsa does is narrower and checkable: hold these rules, and every night it will tell you which of your holdings still clear them and which quietly stopped.
Applying a template takes a minute. The part that is hard to do alone is still being held to it in eight months.