Gavekal Capital: Checking On Our Factor Scoring Model - Changing Expectations Are Important Right Now

Monday, June 23, 2014

Checking On Our Factor Scoring Model - Changing Expectations Are Important Right Now

Of the 30 factors we track, dividend yield and 3-month change in EPS estimates have had the highest r-square value relative to MSCI World performance over the past month. The market seems to be focusing on changing expectations because the 1-month and 3-month change for EPS and sales estimates are all in the top 6 factors over the past month with an r-square value of at least .74. Over the past year, the P/E ratio has the highest r-square value at .97

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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