Documenting with hard evidence the edge we offer to active portfolio managers.
The ability to capture some of the top performers and to avoid most of the bottom performers in whatever investment universe is selected can obviously improve the performance and the risks control.
Our advanced analytics offer a mission-critical edge, as A and B rated stocks outperform C and D rated securities with good consistency across different investment universes. This provides a new level of market intelligence to maximize the performance of any investment strategy.
12 years comparative analysis of the intrinsic edge of our model. We analyze the return of all the stocks rated A and B vs. those rated C and D We use the universe of the 500 largest cap stocks in US and in Europe. We build a US “winners“ and a European “winners” portfolio selecting at any time all the stocks rated A or B, readjusting in case the selection at the end of each month in order to have only securities with a positive rating. We perform the same process selecting only stocks rated C or D and create a US “losers” and a European “losers” portfolio. We then compare the performance of the two portfolios for both markets. We want to prove that stocks rated A and B tend to outperform those rated C and D in a consistent way. Charts below:
Last 6 months average return of positive vs. negative ratings
An up-to-date report analyzing the average return of the A/B rated stocks vs. the C/D rated ones, for the last 6 months (March 1st 2022 to September 1st 2022) in the broad market (US and EU). The additional table presents the 10 best and worst performers, and the performance since rated.
US large and mid cap stocks:
EU large and mid cap stocks:
Social media posts
Our posts on linked documenting our timely rating changes for some of the most popular stocks.