Focus List Update: Numbers No Longer Support Shorting Consumer Discretionary
Stephen Castellano submits:
We are taking our proven methodology used to rebalance the Ascendere Long/Short Model Portfolio of 80-100 stocks on a monthly basis, and applying experimenting with the format on a weekly basis. While introducing some noise, it is also uncovering some good ideas. For paying subscribers we may consider following up with this on a daily basis, as well as providing limited distribution and more timely access of our existing products.
Our approach has been extremely successful at pre-empting a number of ratings actions by major sell side firms. In case this escaped anyone’s attention, last week we laid this out in excruciatingly manic detail in "Goldman Sachs and Nostradamus versus Simple Quantitative Models and Common Sense." We are looking forward to continuing the tradition. Focus List — Weekly Long Ideas Disappoint
The long focus list as of March 12 started out well enough, but ended the week with a dismal decline on average of 0.84%. This compares to a an increase of 0.86% in the S&P 500. The one positive stock, Bank of Montreal (BMO) was unable to offset declines in Macy’s, Inc. (M), Ultrapar Holdings Inc. (UGP) and flat performance from Dick’s Sporting Goods Inc. (DKS). As we had suspected, DKS fulfilled its destiny by outperforming M.
Investing, Long Term Investment, stock market | admin March 22, 2010
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