Our uniquely rigorous research continued to pay off for clients in 2022.
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, outperformed the S&P 500[1] by a combined 39% as a long/short portfolio in 2022. The long portfolio contributed 11% while the short portfolio contributed 28% of the outperformance vs. the S&P 500 in 2022. For real-time tracking of these portfolios, see the index created for Focus List: Short Portfolio here and the Focus List: Long Portfolio here.
Figure 1: Focus List Stocks: Long/Short Outperformance in 2022: 39%
Sources: New Constructs, LLC
Figure 2 shows a detailed breakdown of the Model Portfolios’ performance, which encompasses all stocks included in the Model Portfolios at any point in 2022.
Figure 2: 2022 Long/Short Performance of Stocks in the Focus List Model Portfolios
Sources: New Constructs, LLC
Performance includes the performance of stocks currently in the Focus List: Short and Focus List: Long Portfolios, as well as those removed during 2022 (one stock).
Underscoring just how important reliable fundamental research is in turbulent markets, the performance of these Model Portfolios has beaten the S&P 500 by an even wider margin, 79%, since the start of 2021.
Figure 3: Focus List Stocks: Long/Short Outperformance Since Beginning of 2021: 79%
Sources: New Constructs, LLC
New 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 January 13, 2023.
Disclosure: David Trainer, Kyle Guske II, Matt Shuler, 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.