Our uniquely rigorous research paid off again for clients in the first half of 2022.
Our Focus List Stocks: Long Model Portfolio, the best-of-the-best of our Long Ideas, outperformed the S&P 500[1] by 5% in the first half of 2022 (1H22), returning, on average, -14% in 1H22 compared to -19% for the S&P 500.
Figure 1: Focus List Stocks: Long Performance in 1H22
Sources: New Constructs, LLC
Figure 2 shows a more detailed breakdown of the Model Portfolio’s performance, which encompasses all the stocks that were in the Model Portfolio at any time in 1H22.
Figure 2: Performance of Stocks in the Focus List Stocks: Long Model Portfolio in 1H22
Sources: New Constructs, LLC
Performance includes the performance of stocks currently in the Focus List Stocks: Long Model Portfolio, as well as those removed during the quarter, which is why the number of stocks in Figure 2 (48) is higher than the number of stocks currently in the Model Portfolio (47).
Underscoring just how important reliable fundamental research is in turbulent markets, this model portfolio has beaten the S&P 500 by an even wider margin, 34%, since the start of 2021.
Figure 3: Focus List Stocks: Long Performance over Last 18 months
Sources: New Constructs, LLC
Pro-and-higher members get real-time updates and can track all our Model Portfolios on our site. The Focus List Stocks: Long Model Portfolio contains the “best of the best” of our Long Ideas, and leverages superior fundamental data, which provides a new source of alpha.
We’re here to help 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.
Investors deserve reliable fundamental research, more than ever, to find safer, undervalued stocks.
This article originally published on July 7, 2022.
Disclosure: David Trainer, Kyle Guske II, Matt Shuler, and Brian Pellegrini 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 more of an apples-to-apples comparison of how each stock performed vs. the S&P 500.