UO Matrix via Applied Indexation (...a brief)

 

In advance: Interim period audit of benchmark index/proxy performance (post-election, post-earnings, intervaled-Fed) is enhanced by survey of both broad composite characteristics and contrasting ranged component member performance dispersion on a delineated market-, equal- and portfolio-weighted basis. Developing further depth in benchmark analysis and indexation, to include a cross-sector/multi-asset/multi-factor approach, provides adaptive applications of peer group analytics and valuation.

<U/O> Matrix via Applied Indexation methodology presents data analytics on a relative portfolio-weighted basis to dimension competitive market information and demonstrate interrelationships among benchmark index/proxy component members across economic sectors/asset classes/geography based on corporate business segment operations.

Featured Clean Energy thematic is derived from a combined Renewables/Diversified Industrials/Technology sector-themed overlay within Invesco’s publicly traded 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.

In this brief exercise, an initial abstraction of premise is levered (then deconstructed) to readily effect performance attribution and set parameters of valuation at distinct points of inflection; capital market dynamics and corporate catalysts are evident within an evolving investment universe. PBW 'interim period scorecard' 112924 (v. 093024):

>> PBW total return: YTD24 -25.9% (-31.4%), 1-mo. +7.9% (+3.9%), 3-mo. +12.3% (-0.2%)

>> Weighted price performance YTD24: market-weighted +31.4% (+5.8%), equal-weighted -9.7% (-16.4%), portfolio-weighted +4.6% (-13.3%)

>> Component member total return performance dispersion: YTD24 +353.5%/-83.1% (+204.8%/-79.5%), 1-mo. +203.8%/-40.1% (+65.4%/-51.8%), 3-mo. +181.5%/-52.9% (+133.9%/-65.6%)

>> Median YTD24: -23.0% (-23.9%); n=68

>> Capitalization: Large-cap 22.7% (26.1%), Mid-cap 42.8% (38.7%), Small-cap 34.4% (35.5%)

For additional background and methodology, reference 3QTR24 period release (click here).

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).

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<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, 238 single and multi-listed component members; n=68).

#EnergyComplex #CleanEnergy #Renewables #Strategy #PortfolioManagement #PortfolioStrategies #CorporateFinance #BSOs #Analytics #AppliedIndexation

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.