Gavekal Capital: Looking Back - Beta Drove Returns Last Week

Monday, July 7, 2014

Looking Back - Beta Drove Returns Last Week

As we tend to do at the beginning of a new week, we are going to look back briefly at the previous week to see what of our 30 factors had the highest explanatory value to the market. The "winner" last week was Beta which had a 0.90 r-square value to the market. TIPS yield had the second highest r-square at 0.87. Over the past year, the 3-month change in EPS estimates continues to have the greatest r-square value followed by P/E and P/B.

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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