Avoiding pitfalls in your stock selection process – For active stock pickers, 2020 was a period of dominance by growth stocks, driven largely by large technology groups. The concentration of FAANGs in major indices hit the highest percentage weight in history.
On the flip side of the coin, classic valuation models/factors drastically underperformed as expensive stocks grew even more expensive.
Where are we now? Is the dominance of growth now coming to an end and have we gone past peak earnings growth? If so, what should equity long/short managers be taking into consideration, as they look to optimise portfolio construction this year?
Join us for a discussion on how you can best position your portfolios going forward.
- A look back at 2020
- A period of dominance for growth stocks
- Classic valuation factors/models underperformed
- The heat was on for short sellers
- Where are we now?
- Have we gone past peak earnings growth?
- What strategies work best in the current climate?
- How to position your portfolios going forward:
- Look at past taper tantrums and peak-growth periods for insights
- Don’t let the short side of your portfolio kill your performance
- Position yourself for uncertainty: look at balance sheet quality
- Watch out for areas of extreme valuation
- Avoid credit downgrades
We hope you can join us for what promises to be an engaging discussion.