Our honest approach to research paid off again for clients in 2022.
Our Focus List Stocks: Short Model Portfolio, the best of our Danger Zone picks, outperformed shorting the S&P 500[1] by 28% in 2022. The Model Portfolio returned -41% compared to -13% for the S&P 500. For real-time tracking of this Model Portfolio, see the index Thematic created for it.
Figure 1: Focus List Stocks: Short Performance in 2022
Sources: New Constructs, LLC
Figure 2 shows a detailed breakdown of the Model Portfolio’s performance, which encompasses all stocks included in the Model Portfolio at any point in 2022.
Figure 2: Performance of the Focus List Stocks: Short Model Portfolio in 2022
Sources: New Constructs, LLC
Performance includes stocks currently in the Model Portfolio as well as those removed during 2022 (none).
Underscoring just how important reliable fundamental research is in turbulent markets, this Model Portfolio has beaten shorting the S&P 500 by an even wider margin, 39%, since the start of 2021.
Figure 3: Focus List Stocks: Short Performance Since Beginning of 2021
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 Stocks: Short Model Portfolio leverages 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 12, 2023.
Disclosure: David Trainer, Kyle Guske II, Matt Shuler, and Italo Mendonça 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.