Our uniquely rigorous research paid off for clients in 2022 despite getting off to a slower start in 2023.

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, underperformed the S&P 500[1] by a combined 10% as a long/short portfolio in 1Q23. The long portfolio contributed -3.5% while the short portfolio contributed -7% of the underperformance vs. the S&P 500 in 1Q23. 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 Performance in 1Q23

Sources: New Constructs, LLC

Figure 2 shows a detailed breakdown of the Model Portfolios’ performance, which includes all stocks present in the Model Portfolios at any point in 1Q23.

Figure 2: 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.

Buy the Focus List Stocks: Long Model Portfolio

Buy the Focus List Stocks: Short Model Portfolio

Underscoring just how important reliable fundamental research is in turbulent markets, the performance of these Model Portfolios has beaten the S&P 500 by 74% since the start of 2021.

Figure 3: Focus List Stocks: Long/Short Performance Since Beginning of 2021

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 17, 2023.

Disclosure: David Trainer, Kyle Guske II, and Italo Mendonca 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.

Click here to download a PDF of this report.

Leave a Reply

Your email address will not be published.