Avoiding pitfalls in your stock selection process – For active stock pickers, 2020 was a period of dominance by growth stocks, driven largely by large technology groups. The concentration of FAAMGs in major indices hit the highest percentage weight in history and led to an unprecedented period of performance for growth stocks, at the expense of value stocks.
Last year, classic valuation models/factors drastically underperformed as expensive stocks grew even more expensive. But is the dominance of growth now coming to an end? Are we now past peak earnings growth? And if so, what should equity long/short managers be taking into consideration, as they look to optimise portfolio construction this year?
Discussion points:
• A review of the first half of 2021 – how does it compare to 2020?
• Expensive stocks got more expensive…and valuation models/strategies failed to deliver
• Where are we now? A look at current market leadership
• What can we expect going forward?
- Look at past taper tantrums and post peak-growth periods for insights
- Don’t let the short side of your portfolio kill your performance
- Position yourself for uncertainty: look at quality/balance sheets
- Avoid credit downgrades
- Watch out for areas of extreme valuation
- Stay ahead of surprises and changing analyst sentiment
Join our webinar, hosted in partnership with Refinitiv. The discussion will focus on how all equity l/s managers – both systematic and discretionary – might best navigate the markets, which look set to be uncertain and, potentially, impacted by periods of extreme volatility.
"Short" - Google News
July 12, 2021 at 11:07PM
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How to maximise long and short portfolios without getting crushed - HedgeWeek
"Short" - Google News
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