Gavekal Capital: A Few European Investment Ideas For Those Who Believe In Mean Reversion

Tuesday, September 16, 2014

A Few European Investment Ideas For Those Who Believe In Mean Reversion

Looking over our charts and data, there are a few areas that seem like decent ways to play a mean reversion trade. Over the last 100 days, many large European countries have experienced large technical corrections. In charts below, we show the percent of companies trading above their 100 day moving average in the UK, Germany, France and Italy.

Next we display the performance of the sectors within each country in an effort to show which sectors have dragged down performance the most and are, in turn, the places to look for mean reversion ideas.

Performance MSCI UK

Performance MSCI Germany

Performance MSCI France

Performance MSCI Italy

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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