Our Focus List Stocks: Long Model Portfolio, the best of our Long Ideas, and our Focus List Stocks: Short Model Portfolio, the best of our Danger Zone picks, have beaten the S&P 500 by 72% as a long/short portfolio since the start of 2021 through 1Q24. This outperformance underscores just how important reliable fundamental research is in turbulent markets. See Figure 1.
In 1Q24, the combined portfolio outperformed the S&P 500[1] by 11%. The long portfolio contributed 2% while the short portfolio contributed 9% of the outperformance vs. the S&P 500.
Figure 1: Focus List Stocks: Long/Short Performance Since Beginning of 2021 Through 1Q24
Sources: New Constructs, LLC
For real-time tracking of these portfolios, see the index created for the Focus List: Short Portfolio here and the Focus List: Long Portfolio here.
Figure 2 details the Model Portfolios’ performance, which includes all stocks present in the Model Portfolios at any point in 1Q24.
Figure 2: 1Q24 Long/Short Performance of Stocks in the Focus List Model Portfolios
Sources: New Constructs, LLC
Professional and Institutional members get real-time updates and can track all Model Portfolios on our site. The Focus List: Long and the Focus List: Short Model Portfolios leverage superior fundamental data, which provides a new source of alpha.
We’re here to help you navigate these turbulent times. Our uniquely rigorous fundamental research consistently earns SumZero’s #1 All-Time ranking, along with #1 rankings in several other categories.
This article was originally published on April 11, 2024.
Disclosure: David Trainer, Kyle Guske II, and Hakan Salt, receive no compensation to write about any specific stock, sector, style, or theme.
Questions on this report or others? Join our Society of Intelligent Investors and connect with us directly.
[1] Stocks are in the Focus List Model Portfolios for different periods of time as we open and close positions during the year. When measuring outperformance of the Focus List Model Portfolios, we compare each stock’s return to the S&P 500’s return for the time each is in the Focus List Model Portfolios. This approach provides an apples-to-apples comparison of how each stock performed vs. the S&P 500.