In a recent article for Canada’s Globe and Mail, Darcy Keith highlights Validea.com’s top-performing model, the strategy that Validea CEO John Reese bases on the approach of Tom and David Gardner of The Motley Fool.

Validea’s 10-stock, monthly rebalanced Fool-inspired portfolio has returned 226.4% (14.7% annualized) since its 2003 inception, vs. just 34.3% (3.5% annualized) for the S&P 500. “Don’t let the name deceive you; there’s nothing to be feeling foolish about here,” Keith writes. “The Gardners had a goal of identifying small, fast-growing companies with solid fundamentals using eight main attributes that investors should look for in small companies. They put particular emphasis on finding stocks with an earnings growth rate that is greater than the stock’s price to earnings ratio — what is commonly known as the PEG ratio.”

In addition, he notes, the Fool-inspired strategy looks at variables such as 12-month relative strength, profit margins, and net income and revenue growth. It targets smaller stocks that fly under the radar by also employing such variables as annual sales (which should be less than $500 million) and daily dollar volume (which should be no greater than $25 million). To read the full article and see what stocks the model is high on right now, click here.