Gavekal Capital: Knowledge Continues Outperforming In 2015

Friday, February 20, 2015

Knowledge Continues Outperforming In 2015

We have developed two indexes that are designed to track the world's leading innovators based on our proprietary intangible-adjusted data We have a developed markets knowledge leader index and an emerging markets knowledge leader index. Both indexes are equal-weighted and are rebalanced twice a year (April and October). So far in 2015, knowledge has outperformed the general market (to learn even more about our indexes please click here and here).

The Gavekal Knowledge Leaders Developed World Index has returned 5.13% through the close yesterday. Meanwhile, the MSCI World Index has returned only 3.26%, leading to a 187 basis point outperformance through roughly the first month and half of the year. This is just a further continuation of the outperformance of the index since it was started in April 2007. Since that date, the Gavekal Knowledge Leaders Developed World Index has outperformed the MSCI World Index by over 42%.

The Gavekal Knowledge Leaders Emerging Market Index has gained 4.33% so far in 2015. During this same period, the MSCI Emerging Market Index has gain 3.16%. The Gavekal Knowledge Leaders Emerging Market Index has outperformed by 117 basis points. Similar to the developed markets index, the emerging markets index has significantly outperformed since its inception date in 2007. The Gavekal Knowledge Leaders Emerging Market Index has managed to return 214.05% since April 1, 2007 which has led to 86.09% outperformance versus the MSCI Emerging Markets Index.

Both of the indexes are priced daily and can be found on your bloomberg terminal using the KNLGX Index or KNLGEX Index tickers.

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.
Blogs are posted by our investment team. Find out more about us at here. Read more about our strategy at www.gavekalcapital.com.

Disclosure

The information presented here is for informational purposes only, and this document is not to be construed as an offer to sell, or the solicitation of an offer to buy, securities. Some investments are not suitable for all investors, and there can be no assurance that any investment strategy will be successful. An investor cannot invest directly in an index. Hyperlinks may be included in this message that provide direct access to other internet resources, including web sites. While we believe these links are to reliable sources, Gavekal has no control over the accuracy or content of information contained on these sites. Although we make every effort to ensure such links are accurate, up to date and relevant, we have no control over pages maintained by external providers. The views expressed by these external providers on their own web pages or on external sites they link to are not necessarily those of Gavekal.
The information listed on this blog is for example purposes only and should not be construed as the investment Advisor's opinion or investment outlook. As of the most recent quarter end, the named companies may have been held by the investment Advisor. Please review the most recent disclosures. For full information including additional policies and full disclosures on the Advisor, please visit our website gavekalcapital.com.