Wednesday, January 19, 2022

4QTR21 U/O Matrix via Applied Indexation


In advance: 4QTR21 <U/O> Matrix via Applied Indexation is currently available in multi-sheet format illustrating the structured ecosystem composition and supply chain verticals within publicly traded Clean Energy Subindustry Benchmark ETF PBW.

A combined Renewables/Diversified Industrials/Technology sector-themed overlay approach utilizes iterative index applications of peer group analytics and valuation to provide effective Alpha and Alpha-Beta screens. Segments include Wind, Solar, Fuel Cells, Smart Grid, Water, LED, Biofuel, Automotive, Natural Gas, Storage and Aviation plus further classifications detailing component member assignments based on corporate business segment operations (12 segments, 59 classifications, 76 single and multi-listed component members; n=248).

4Q21 PBW -6.8%, CY21 -29.8%; 12-mos. performance dispersion: +145.5%/-87.7% (011422).

PBW Fwd (adj.) PE=34.4 Beta=1.4 versus 33.2/1.4, 34.1/1.4 and 34.0/1.3 sequentially. SPX 12-month Fwd PE=21.1 v. 20.5/Q3, 21.4/Q2, 21.8/Q1 (FactSet); CAPE 38.5 from 37.9/38.6/37.6, mean 16.9 (Shiller).

Reference the tutorial tab at for a voiceover slide show outlining sample adaptive methodology in tandem with blog post <U/O> Matrix - Establishing Predictive Value exercise. Investable motifs (long/short): conventional, thematic, megatrend, equity/corporates, value/growth and factor-based.

Please message direct with any questions or for product suite access and development considerations.

#Strategy #CleanEnergy #Renewables #CorporateFinance #BSOs #PortfolioManagement #Analytics

At Venn’s intersection, sets and subsets of competing interests endure. The dynamic principles of BSOs are three-fold: 1) multinational and Large-cap companies function as benchmark sector/industry/subindustry proxies based on scale (Alpha-Beta), 2) Small- and Mid-cap companies participate as competitive peers (Alpha) and, hence, acquisition candidates and 3) among subsets of 1) and 2) are companies provisioning multiple economic sectors, asset classes and geographies. Successful trading strategies (conventional, systematic, factor-based) and adaptive investable motifs (niche, thematic, megatrend) isolate Value in Growth, and Growth in Value, by aligning the prospective Alpha drivers directly associated with ecosystem and supply chain verticals.

Forward looking statements, estimates and certain information contained herein are based upon proprietary and non-proprietary research and other sources. Information contained herein has been obtained from sources believed to be reliable but are not assured as to accuracy. Past performance is not indicative of future results. There is neither representation nor warranty as to the current accuracy of, nor liability for, decisions based on such information. This content is distributed for informational purposes only and should not be considered as investing advice or a recommendation of any particular security, strategy or investment product. The author's opinions are subject to change without notice. No part of this product, related articles, publications or web-based content may be reproduced in any form or referred to in any other publication without express written permission of Universal Orbit © 2022 and David B. Kleinberg.

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