When you think of elite investment performance, names like Berkshire Hathaway, Blackrock, and Blackstone naturally come to mind. These firms represent some of the most respected approaches in the financial world—value investing, growth strategies, and alternative assets respectively. Each holds a long-term, buy-and-hold philosophy with minimal portfolio turnover.

But what happens when we compare their performance to a lesser-known, model-based strategy?

Enter the Stars Model—a rules-based investment system that takes a radically different approach to achieving returns. Unlike traditional firms, Stars thrives not on market direction but on capturing price volatility. The results speak volumes.

Performance Comparison vs. the S&P 500

Over the past:

14 years:

Berkshire Hathaway and Blackrock: ~on par with the S&P 500

• Blackstone: +6% above the S&P
• Stars Model: +19% above the S&P

5 years:

• Blackstone: +12% above the S&P
• Stars Model: +27% above the S&P

Yes, you read that right—Stars outperformed Blackstone by 13 percentage points over 14 years, and 15 points over just 5 years.

Why Does Stars Perform So Well?

The secret lies in three key distinctions:

1. Active Evolution Stars continually upgrades its holdings based on performance signals, unlike the relatively static portfolios of the big firms.
2. Momentum Focus While traditional firms often invest in undervalued or declining assets, Stars targets stocks that are already rising—riding momentum rather than betting on a turnaround.
3. Volatility as Opportunity Stars makes money because of market volatility, not in spite of it. It doesn’t rely on the market’s upward direction to generate gains.

A New Way to Think About Investing

The Stars Model isn’t just another strategy—it’s a fundamental rethinking of how to invest. With over a decade of proven outperformance, it’s redefining what’s possible for long-term investors.

For those curious about how model-based strategies can reshape their portfolios, Stars offers an exciting and powerful alternative.