Tuesday, August 9, 2022

2QTR22 UO Matrix via Applied Indexation


In advance: 2QTR22 <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.

>> PBW total return: 2Q22 -29.4%, YTD 2022 -16.7%; performance dispersion +93.2%/-83.9% (080522).

>> SPX 12-month Fwd PE=17.5/2Q22 v. 19.0/1Q22, 21.1/4Q21, 20.5/3Q21 (FactSet); CAPE 31.1 from 34.6/38.5/37.9, mean 17.0 (Shiller).

>> PBW Fwd adj. PE=30.4 Beta=1.5 versus 34.4/1.4, 34.4/1.4 and 33.2/1.4 sequentially (40.0 max.; N/A totals 58.6% based on portfolio weight and 61.7% of count, 14.0% on market capitalization; Large-cap 20.2%, Mid-cap 45.7%, Small-cap 34.4%).

<U/O> Applied Indexation methodology introduces the concept of business segment operations as a means to highlight the modularity of corporate profiles, producing deeper comparables by deconstructing a company’s revenue line then linking resultant business segment operations across asset classes and capitalization within a designated composite benchmark portfolio.

<U/O> Matrix via Applied Indexation 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, 61 classifications, 256 single and multi-listed component members; n=81).

Please message direct for product suite access and development considerations.


<U/O> Matrix - Establishing Predictive Value: Applied Indexation, Hierarchical Data Sets and Competitive Market Information slideshow tutorial (click here) is developed with the intent to improve peer group analytics and valuation. The premise is to complement existing institutional portfolio strategies and lend Tier-2 Alpha and Alpha-Beta screening tools to effort outperformance in both up and down markets. A goal of this <U/O> Applied Indexation abstraction is to demonstrate the many persistent Venn-like qualities present throughout the capital markets which may be exploited for profitable portfolio positioning at distinct points of inflection.

While capital markets inefficiencies is not a new concept, perhaps the attributes of <U/O> Applied Indexation may be another useful tool for research teams and client driven solutions.


#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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