India Strategy Report Back
India Strategy: Contrarian Investing - Quarterly Update
15-Jan-2018

  • Our analysis suggested that, over a longer term, neutral to moderately popular stocks deliver significant outperformance, even bettering the performance of the most popular stocks. In this quarter, neutral to moderately popular stocks as well as the most popular stocks failed to beat the benchmark.  The most popular stocks delivered the worst return in this quarter, whereas the least popular stocks performed the best.
  • Our findings proved that, over the long term, out-of-favor low P/E stocks deliver disproportionate returns, significantly beating the benchmark. In contrast, the performance of high P/E stocks is dismal. In this quarter, high P/E stocks delivered the best returns, whereas the low P/E quintile failed to beat the benchmark.
  • Similarly, out-of-favor low P/CF stocks deliver disproportionate returns,significantly beating the benchmark. In contrast, the performance of high P/CF stocks is dismal. In this quarter, low P/CF stocks delivered the 2nd best returns,whereas the high P/CF quintile performed the worst