Equity Strategies Group-Level Analysis Of The Equity Markets
Group Models: Info Tech Tops Domestic, Financials Tops Global
Both models (particularly domestic) have a number of Attractive rated Information Technology groups and no Unattractive rated Tech groups. Financials’ domination of the Global Attractive range continues.
Select Attractive Domestic Groups
Auto Parts & Equipment, Systems Software, Life & Health Insurance and Life Sciences Tools & Services are featured this month.
Aerospace & Defense Purchased
With a wide range of market cap choices, an excellent technical profile, and less dependence on federal spending than you might think, this group has compelling stories of future profitability and growth.
The Short Side - AdvantHedge Lags YTD
Our AdvantHedge composite gained 0.8% in August, lagging the inverse performance of the S&P 500 (-2.9%) and the Russell 2000 (-3.2%) while matching that of the NASDAQ (-0.8%).
Select Industries: Health Care And Info Tech Exposure Added
Health Care Distributors and Electronic Manufacturing Services were both added to the portfolio this month.
Group Deactivations: Oil & Gas Refining & Marketing was deactivated.
Group Models Agree On Energy & Materials
But Information Technology rises to the top of the Domestic model, while the trend of Financials domination in the Global model remains intact.
Select Attractive Domestic Groups
Consumer Electronics, Broadcasting, Home Entertainment Software, and Aerospace & Defense.
Electronic Manufacturing Services Purchased In Select Industries
Attractive valuations, improving growth and technical strength are the key drivers. The group offers an opportunity to participate primarily in the overall growth of computing devices.
Health Care Distributors Purchased In Select Industries
Excellent scores in three of six model categories, plus it offers plenty of market cap and low beta relative to other Health Care groups. We think it will benefit from broad, long-term industry trends.
The Short Side—Still Ahead YTD
Our AdvantHedge Composite lost 5.9% in July, lagging the inverse performance of the S&P 500 (5.1%), but outpacing both the NASDAQ (6.6%) and the Russell 2000 (7.0%) as the market returned to “risk-on” mode.
Checking In On Some Past Group Ideas
Updates for three groups we highlighted recently, including two domestic (Education Services and Automotive Retail), and one foreign-based thematic group, the Asia Healthy Tigers Index.
Select Attractive Domestic Groups
Specialty Stores, Home Furnishing Retail, Personal Products, and Cable & Satellite.
The Short Side - Slightly Ahead YTD
Info Tech remains the largest sector short position, while Energy is second.
Domestic and Global Group Models: Strong Agreement On Financials
Our Domestic Scores have five Financials groups rating Attractive; these same five industry groups are Attractive in our Global model. In total, seven Financials groups rank Attractive in the Global model, with insurance groups looking particularly Attractive.
Select Industries: Adding Insurance To Portfolio
Multi-Line Insurance was added to the portfolio. While several insurance groups currently rate Attractive, we like the diversified nature of the Multi-Line group.
A Correction Preview?
Was the brief taper-induced pullback a sign of what’s to come down the road? If so, we looked at what factors performed well and what factors didn’t in response to the rising rate environment.
Is Overcapacity A Problem For Emerging Market Airlines?
Airlines are Attractive in both group models, but there could be trouble on the horizon as emerging market carriers face the challenges of rapid growth.
Select Industries: Airlines And Rails Remain Largest Group Holdings
Group Deactivations, New Groups and best performing groups in May.
Select Domestic Groups Upgraded To Attractive
Property & Casualty Insurance, Life & Health Insurance, Restaurants, and Apparel, Accessories & Textiles all moved into the top quintile.
The Short Side — Slightly Ahead YTD
Info Tech remains the largest sector short position, while Energy is second.
Perception for the Professional
March 2026 Issue
Featured Articles
Sector Navigator
March 2026 Issue
