Rebalance after the portfolio as a whole is up 5% or more, or after three months, whichever is first. As one may surmise from this qualifying data, the approach makes the most of both small capitalization (the "little cap" part of the strategy's name, since smaller market cap stocks tend to outperform large capitalization ones) and price momentum. In addition, there is a bonus, the dividends the portfolio provides. The yield adds to the total return. Further, smaller capitalization stocks that offer dividends generally have lower risk and better performance compared with their non-dividend paying cousins.

The final bonus part of the "bo" in the name comes from a modest use of margin debt. On average, micro-cap to smaller capitalization stocks have provided total returns since 1926 of about 11-12% a year. Those with dividends do somewhat better, so make that around 13%. I would tweak this a little with margin debt, buying enough new shares when the markets are down to assure that, after all expenses, one gets from this strategy around 15% a year or better, averaged over five years, enough to at least double one's money in that period of time.

In view of the strong momentum aspect of this investing technique, some surprisingly value related qualities may be uncovered in the stocks meeting the requisite filters. For instance, among last quarter's winners was one, TICC, with then a greater than 8% dividend and low debt. Amid the current batch, though their trailing dividend percentages are each 3.10%, already well above average, the projected forward dividends of both FRD (4.40%) and INTX (4.10%) would meet the Ben Graham criteria for bargain stock status. Since dividends are often paid quarterly, holding the stocks for three months or longer (if they have not averaged gains before then of at least 5%), helps assure this strategy will harvest some income in addition to the assets' price performance.