Gavekal Capital: Cracks in the Postitive Relative Performance of European Equities?

Friday, March 28, 2014

Cracks in the Postitive Relative Performance of European Equities?

A quick scan of our heatmap shows a slowing in 200-day relative performance over the last several weeks, led by equities in MSCI Germany and MSCI U.K.:

On a sector basis, Consumer and Technology stocks have faltered the most, while Telecom and Utilities remain on a more positive trajectory:

Though the Food, Beverages, & Tobacco industry group's performance has improved some in the last month or so, the entire Consumer Staples sector continues to underperform:

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.
We offer the Gavekal Knowledge Leaders Strategy in multiple products for global investors. For more information about our product offerings please visit http://www.gavekalcapital.com.
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