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While AlphaValue battles on in the face of quick changes in sentiment even on the quality stocks populating its Buy & Hold and Active lists, its Short & Hold list has delivered remarkable returns ytd in a period of rising markets.

Here is the current performance picture and the historical returns which are admittedly volatile. As a reminder the performance computation is achieved by reversing the current index (Stoxx600) performance.


The striking chart is the one tracking the daily performance ytd (below). The green line highlights the fact that the outperformance has essentially never retreated ytd. This is a surprise. To date the Short & Hold list, limited to 25 equally weighted names, as is the case for every strategy offered by AlphaValue, has posted by far the best ytd performance. This is obviously unlikely to last and does not allow for borrowing costs.


Short & Hold strategy's exceptional ytd run


Stocks selected for this strategy can be ‘held’ for a very long time (GBL, Inmobiliaria Colonial for instance, both since 2022) as they are selected on a combination of structural weakness in their business model, weakish balance sheet on AlphaValue's own credit assessment (much more reactive than what CRAs will say) and mediocre governance. Those features never evaporate suddenly hence the ‘hold’ in the short position. Please note that some of the stocks may end up being rated strong Buys as they move into value trap territory. Indeed, in our rating system a BUY is automatic when the target price exceeds the current price by 20% or more.

The detailed list is not available to the public but only to subscribers on request. To date the best contributors to the performance have been Grifols, Sixt, Icade, Remy Cointreau and AF-KLM. All are strong Buys on the usual valuation fundamentals.

Reach out to us at sales@alphavalue.eu to get access to our Short & Hold lists and learn more about our services.



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