Tuesday, April 19, 2022

1QTR22 U/O Matrix via Applied Indexation

In advance: 1QTR22 <U/O> Matrix via Applied Indexation is currently available in multi-sheet format illustrating structured ecosystem composition and supply chain verticals within publicly traded Clean Energy Subindustry Benchmark ETF - PBW.

Iterative index applications of peer group analytics and valuation are demonstrated to provide effective Alpha and Alpha-Beta screens in a combined Renewables/Diversified Industrials/Technology sector-themed overlay. 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, 58 classifications, 243 single and multi-listed component members; n=78).

Transformative BSOs isolate sector/industry/subindustry drivers of valuation, peer-to-peer outgrowth and corporate revenue lines for execution of evolving dynamic portfolio strategies. Sentiment inflections and implicit correlations capture tiered catalysts (e.g. emerging technologies, sovereign/public policy, consumerism) for position build across investable long/short motifs: conventional, niche, thematic, megatrend, equity/corporates, value/growth and factor-based.

>> PBW performance: 1Q22 -8.3%, CY22 -18.1%; YTD dispersion +63.8%/-71.7% (041422).

>> SPX 12-month Fwd PE=19.0/1Q22 v. 21.1/4Q21, 20.5/3Q21, 21.4/2Q21 (FactSet); CAPE 34.6 from 38.5/37.9/38.6, mean 16.9 (Shiller).

>> PBW Fwd adj. PE=34.1 Beta=1.4 versus 34.4/1.4, 33.2/1.4 and 34.1/1.4 sequentially (40.0 individual maximum; N/A totals 62.6% based on portfolio weight and 62.8% of count, 13.0% on market capitalization; Large-cap 24.3%, Mid-cap 49.5%, Small-cap 26.2%).

Please message direct for product suite access and development considerations; reference <U/O> Applied Indexation …a brief tutorial. (here) for a voiceover slide show outlining adaptive proprietary methodology.

#EnergyComplex #CleanEnergy #Renewables #Strategy #PortfolioManagement #CorporateFinance #BSOs #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 composition 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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