Evidence

As we say that the unique edge we offer is measurable here we provide evidence about the fact that stocks rated A and B on average outperform those with C and D rating.

Every month we publish in this section reports and statistics that document results at the end of each month.

You can look at:

  • The strategies. An example of investment strategies / equity model portfolios on different markets. The strategies have been published on our site since 2015. Every month we publish the updated statistics and the list of the holdings so you track with full transparency month after month actual results.
  • Actual statistics on the “ edge “ – comparing the historical returns of A/B vs. C/D. Every month we measure and compare the last 3 months average return of stocks rated A/B vs. those rated C/D, including the list of the two subsets . It is possible then to observe the actual results of our trend capture rating.
  • Our white papers

Strategies

Below are examples of the Trendrating model and methodology applied to different equity markets. The strategies are live since January 2015. Results since then are actual and are documented by the monthly update. This is designed to provide asset managers with a transparent manner to track the effectiveness of the Trendrating model.

The Trendrating 25 and Trendrating 50 strategies are highly aggressive and volatile by design. The selection of stocks is based on Trendrating proprietary model, but there is a preference for lower market cap stocks. This is an example of combining our Trend-Capture Metrics starting from a “size factor” investment approach. The exposure to stocks is re-adjusted at the end of every month.

Trendrating methodology can be used as an overlay to any investment approach, either based on a factor or purely discretionary with the goal of maximizing the exposure to the winners and avoid a large part of the losers.

Actual statistics on the “edge”

Here we want to document on a systematic basis the accuracy of our rating methodology across the board and measure the outperformance of securities rated A and B vs those rated C and D. We publish every month reports to prove this point.

PDF document (Monthly Statistics EU) – June 2019

PDF document (Monthly Statistics EU) – July 2019

PDF document (Monthly Statistics US) – July 2019

PDF document (Report – AB vs CD Rated Stocks – 50 Securities) – July 2019

PDF document (Report – AB vs CD Rated Stocks – 320 Securities) – July 2019

Our white papers

See our white papers that explains our methodology and the benefits for active managers.

Extracting Performance from Return Dispersion in Equity Markets

Market Return Dispersion & Opportunities For Active Managers

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