In advance: 2QTR24 <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 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.
<U/O> Matrix via Applied Indexation incorporates a relative portfolio-weighted approach to benchmark analysis and competitive market information in tandem with refined sector/industry/subindustry nomenclature assignments to improve peer group analytics and valuation. In this construct, critical multi-sector/cross-asset/factor-based variables may be further catalyzed along with conventional market- versus equal-weighted index/proxy total return performance comparables at distinct points of inflection.
>> PBW total return: 3-mos. +11.8%, 2Q24 -12.0%, 1-mo. +4.2%, 12-mos. -44.3%; YTD24 performance dispersion +167.5%/-96.7% (071224).
>> PBW Fwd adj. PE=28.4 Beta=1.6 versus 26.8/1.6, 24.0/1.5 and 23.7/1.5 sequentially [40.0 limit; N/A totals 57.4% (v. 62.0%) based on portfolio weight and 57.1% of count (-6.3%), 8.5% on market capitalization (-1.3%); Large-cap 20.3% (+4.5%), Mid-cap 36.4% (-2.2%), Small-cap 43.3% (-2.2%)].
>> SPX 12-month Fwd PE=21.2/2Q24 v. 20.6/1Q24, 19.2/4Q23, 17.9/3Q23 (FactSet); CAPE 35.8 from 34.7/32.3/29.5, mean 16.0 (Shiller).
<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, 58 classifications, 251 single and multi-listed component members; n=70).
Business segment operations illustrate the interrelationships among benchmark index/proxy component members across economic sectors, asset classes and geography. Articulating resilient consecutive and parallel investment narratives serves to demonstrate differentiated value and isolate dislocations in valuation (performance dispersion).
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 the past-positive forward looking portfolio-based relative indicators featured in <U/O> Matrix via Applied Indexation, a brief primer is provided online along with recent posts ‘Alpha, Beta, Alpha-Beta’, <U/O> Tutorial_5: Performance Dispersion (Meta) and slideshow <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 business segment operations 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 portfolio strategies (fundamental, index-plus, systematic) 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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