Financial Advisors

U.S. Performance Dispersion – July 2021

The performance dispersion across any investment universe is a gold mine for active investors that have the right tools to profit from it. The ability to “identify and capture” some of the top 25% performers can make a big difference. It is possible to gain an edge using intelligent “trend validation” analytics.

At Trendrating we like to track and document the performance dispersion, a valuable insight for active managers. Our unique rating methodology can contribute to profiting from the dispersion.

Price trends are more extreme and last longer than in the past as they are impacted by several factors of which company fundamentals are only a small part. Money flow caused by major firms, analyst sentiment, social media sentiment, momentum players, and an economic landscape full of uncertainty and fast changing scenarios all contribute to creating and accelerating price trends in either direction that fundamental-driven methodologies cannot capture.

Each month we publish a report exposing the statistics across US sectors. Here is the last 6 months performance dispersion for the US market.

At the end of July, the best average profit opportunities in the top 25% of best performing stocks were available in Energy, Communication Services and Consumer Discretionary. Narrower dispersion was found in Consumer Staples, Utilities and Health Care.

Trendrating rankings
Trendrating rankings
Trendrating rankings
Trendrating rankings
Trendrating rankings
Trendrating rankings

Additional Information

Trendrating Use Cases – An overview of the services we offer

Trendrating Indices – Six Indices calculated daily and rebalanced monthly

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Rocco Pellegrinelli

Rocco Pellegrinelli began his career as a portfolio manager. He has been a successful entrepreneur in the technology sector for the past 20 years. He created Brainpower in 1996 and as Chairman and CEO, established it as one of the top portfolio management systems globally. After taking the company public on the Frankfurt Stock Exchange in 2000, Brainpower was acquired by Bloomberg in 2006. His conviction is “Many analytical tools makes sense, but do they also make money? It is time to bring real value to fund managers.” Rocco believes that the asset and wealth management industries need to evolve toward higher standards of value to clients, in an efficient and cost effective manner. Adopting new data and sophisticated tools is now a necessity. He launched Trendrating with the mission to provide innovative analytics and technology that deliver alpha, which are measurable, actionable, and repeatable.

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