Tuesday, January 9, 2024

4QTR23 UO Matrix via Applied Indexation

In advance: 4QTR23 <U/O> Matrix via Applied Indexation is currently available in multi-sheet format.

Featured Clean Tech thematic is derived from a combined Renewables/Diversified Industrials/Technology sector-themed overlay within Invesco’s publicly traded WilderHill Clean Energy subindustry benchmark proxy ETF (ticker PBW), utilizing the modularity of business segment operations embedded within company revenue lines to generate effective Tier-2: Alpha and Alpha-Beta screens.

>> PBW total return: 3-mos. -4.1%, 4Q23 -4.8%, CY23 -20.0%; 12-month performance dispersion +365.5%/-81.0% (010524).

>> PBW Fwd adj. PE=24.0 Beta=1.5 versus 23.7/1.5, 28.8/1.5 and 29.8/1.5 sequentially [40.0 limit; N/A totals 60.5% (v. 59.9%) based on portfolio weight and 60.8% of count (-0.2%), 11.1% on market capitalization (-0.7%); Large-cap 19.1% (+0.7%), Mid-cap 41.9% (-0.6%), Small-cap 39.0% (-0.1%)].

>> SPX 12-month Fwd PE=19.2/4Q23 v. 17.9/3Q23, 18.9/2Q23, 17.8/1Q23 (FactSet); CAPE 32.3 from 29.5/31.1/29.7, mean 17.1 (Shiller).

For portfolio management teams, <U/O> Matrix via Applied Indexation represents an opportunity to incorporate fundamentally-based research complements into adaptive cross-asset multi-factor portfolio strategies: 1) refined sector/industry/subindustry nomenclature and data analytics to improve peer group analytics and valuation (benchmark analysis), 2) relative value presentations across economic sectors and asset classes (ref. past-positive forward looking indicators), 3) methodology and ranged parameters to exploit performance dispersion within a designated index or benchmark proxy (volatility adds value) and 4) inclusion of ‘N/A’ PE reporting companies in nascent industries with emerging technologies (component members; universe constituents).

<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, 62 classifications, 265 single and multi-listed component members; n=74).

Please message direct with any questions or for product development considerations; spreadsheet downloads available for research libraries at b-platform Access tab (auto-generated password; PayPal hosted).


note: w/r/t past-positive forward looking indicators featured in <U/O> Matrix via Applied Indexation, a brief primer is provided online along with recent posts <U/O> Tutorial_5: Performance Dispersion (Meta), Data Refinement: Business Segment Operations (BSOs) and slideshow tutorial <U/O> Matrix - Establishing Predictive Value: Applied Indexation, Hierarchical Data Sets and Competitive Market Information.

#EnergyComplex #CleanEnergy #Renewables #Strategy #PortfolioManagement #PortfolioStrategies #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 © 2024 and David B. Kleinberg.

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