Gavekal Capital: Growth Defensive Sectors Outperforming With Broad Participation

Wednesday, November 13, 2013

Growth Defensive Sectors Outperforming With Broad Participation

For the last last month, the MSCI World consumer staples and health care sectors have taken the lead. Of the counter-cyclical sectors, these are the two "growth defensive" sectors while telecom and utilities are more "income defensives".

Performance in these growth defensive sectors has been very broad. We calculate the percentage of stocks in each sector that are up in price and down in price over various time periods. In both the consumer staples and health care sectors, over the last month, 72% of the stocks have been up while only 28% were down.

This gives us a net reading of 44% for each sector.

About Gavekal Capital

Gavekal Capital is a US registered investment advisory firm that manages the Gavekal Knowledge Leaders Strategy. Knowledge Leaders are a group of the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. Knowledge Leaders are largely service-based and advanced manufacturing businesses, often operating globally. Gavekal Capital seeks to identify the world’s leading knowledge companies through a proprietary process that analyzes corporate knowledge investments.
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