Beating The Market While Hedging--It's Possible, But Security Selection Is A Key Element
Portfolio Pulse from dpinsen@yahoo.com
The article discusses a strategy for beating the market while hedging, which involves buying and hedging a handful of promising stocks that are relatively inexpensive to hedge. The process involves estimating potential returns, calculating the least expensive way of hedging each security, subtracting the hedging cost from the estimated returns, and buying and hedging the top names. A portfolio created using this strategy, which included Abercrombie & Fitch, Inc. (ANF), Super Micro Computer, Inc. (SMCI), and Viking Therapeutics,Inc. (VKTX), was up 23.28% over six months, compared to 5.18% for the SPDR S&P 500 Trust ETF (SPY).
October 09, 2023 | 3:16 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
The SPDR S&P 500 Trust ETF (SPY) saw a return of 5.18% over six months, compared to a 23.28% return for a portfolio using a hedging strategy.
The lower return of SPY compared to a portfolio using a hedging strategy indicates a negative short-term impact on the ETF.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
POSITIVE IMPACT
Abercrombie & Fitch, Inc. was included in a portfolio using a hedging strategy, which saw a return of 23.28% over six months.
The inclusion of ANF in a successful hedging strategy portfolio indicates a positive short-term impact on the stock.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
POSITIVE IMPACT
Super Micro Computer, Inc. was included in a portfolio using a hedging strategy, which saw a return of 23.28% over six months.
The inclusion of SMCI in a successful hedging strategy portfolio indicates a positive short-term impact on the stock.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
POSITIVE IMPACT
Viking Therapeutics,Inc. was included in a portfolio using a hedging strategy, which saw a return of 23.28% over six months.
The inclusion of VKTX in a successful hedging strategy portfolio indicates a positive short-term impact on the stock.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75