Home Run Index - Company List Now Available for Registered VE Subscribers! Register Now!

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The Value Expectations blog is introducing the Home Run Index – a model portfolio that will be updated monthly to contain some of the best ideas from our quantitative research. Our first portfolio is available below for our registered users. If you have not registered yet, and would like to view the companies in this month’s portfolio, please register now. On an ongoing basis, we will update performance each month, along with a new set of tickers as these metrics change.

Click Here to view the PDF with the entire list of Home Run Index Stocks

Must be a registered subscriber to VE.com! Register Now... Its Fast and Free!

What is a Home Run Index Stock?

AFG’s research has identified five factors that consistently identify stocks likely to deliver significant short term over and under performance. Our Home Run Index recommendations rate highly across each of these factors.

Valuation: Identifies companies trading at significant discount to AFG’s intrinsic value estimate.

Momentum: Identifies companies with positive Economic Margin Momentum over a three-month window.

Earnings Quality: Identifies companies with strong relationships between their cash flows and net income, based on changes in Net Operating Assets, and avoids companies with high accruals.

Management Quality: Identifies whether corporate management teams are pursuing strategies that create or destroy value.

Price Characteristics: In most markets, we look for stock candidates that exhibit certain traits related to their share price and moving average relationship, but in periods of high market turbulence, we will ignore these metrics until markets recover.

Historical Performance:

The Home Run Index has outperformed the Russell 3000 by 15.0% annually since 9/98, with a monthly outperformance batting average of 66.7%. On average, roughly 103 companies are included in the portfolio each month, with 39 from the Russell 1000 and 64 from the Russell 2000.

Click Here to view the PDF with the entire list of Home Run Index Stocks!

Must be a registered subscriber to VE.com! Register Now... Its Fast and Free!