AlphaValue’s Buy & Hold Portfolio continues to surprise on the positive side. The ytd outperformance is 15% so that it is down only 2% in absolute terms.
Over the last month, when bulls took over which should not have been supportive for quality and rather defensive stocks, the relative performance initially plunged to -2.5% to recover to +2% (see chart below).
This would confirm the view that selecting stocks on their intrinsic long-term qualities (dubbed Fundamental Strength at AlphaValue, a proprietary algorithm) with little respect for sector, country balance, analyst sentiment or short-term recommendation does pay off. Even in rather rocky markets.
The relative outperformance has been a feature of that agnostic selection process over the last seven years but it is fair to say that the current 15% outperformance year to date sounds somewhat too strong to hold.
One of the potential sorry outcomes as AlphaValue holds a rather negative view of current valuations would be for markets to retreat further, and thus presumably help the Buy & Hold list maintain its outperformance but with a deeply negative one in real money terms.
That after all happened once, in 2018.
Below is the list of current holdings. Many are current “Reduce or Sell” recommendations. Many have been in place for ages. As usual, time is an investor’s best friend.
To learn more about AlphaValue’s Selections : click here
Founded in 2007, AlphaValue is the world’s leading provider of Independent European Equity and Credit Research. We provide comprehensive, unconflicted research-only (no execution, no corporate finance) coverage of c. 480 European mid and large cap stocks. We have an average of 46% of negative recommendations at any one time. Learn more at www.alphavalue.com