As of the end of 3Q23, 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 62% as a long/short portfolio since the start of 2021. See Figure 1.
Figure 1: Focus List Stocks: Long/Short Performance Since Beginning of 2021 Through 3Q2023
Sources: New Constructs, LLC
Through the first nine months of 2023, the combined portfolio underperformed the S&P 500[1] by 19%. The long portfolio contributed -5% while the short portfolio contributed -14% of the underperformance vs. the S&P 500. 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: Focus List Stocks: Long/Short Performance Through Nine Months of 2023
Sources: New Constructs, LLC
Figure 3 shows a detailed breakdown of the Model Portfolios’ performance, which includes all stocks present in the Model Portfolios at any point through the first nine months of 2023.
Figure 3: 2023 Long/Short Performance of Stocks in the Focus List Model Portfolios
Sources: New Constructs, LLC
Click to buy the most recent version of these Model Portfolios below.Underscoring just how important reliable fundamental research is in turbulent markets, the performance of these Model Portfolios has beaten the S&P 500 by 62% since the start of 2021.
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 October 16, 2023.
Disclosure: David Trainer, Kyle Guske II, Hakan Salt, and Italo Mendonca receive no compensation to write about any specific stock, sector, style, or theme.
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[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.