High Beta Names Do Not Do Well in June....

Doing bespoke work since 2002....., Custom Products Group

Patrick Hansen

Doing bespoke work since 2002.....

Custom Products Group

Custom Products was started 14 years ago at Lehman Brothers by current co-founder Patrick Hansen, CFA. After 3 years at Lehman, Patrick moved the team to Macquarie Securities where Simon Rigney (co-founder) joined. 3 years ago we took Custom Products independent. 

Our core strength can be summed up three words. 1- Customization - we have very little off the shelf products and most work is done on a one on one bespoke basis. 2- Speed - We pride ourselves in our ability to get requests back to the client very quickly. 3- Confidentiality - We do not redistribute. There is no grace period where we wait a week and then mass blast. Any request stops with that client.

Thematic (Sector/Industry)

<p>As the top 5 factors in July are technical signals, clearly names up from April to June continue to go up in July. The strongest factor is the Relative Strength Index (RSI) with an information coefficient (IC) of above 8% followed by 3M Momentum. On the other side, there is Book Yield or PBR with a negative IC of 7%. Also companies with a high % of Retail Investors tend not to do well in July. </p><h2>   July Factor Performance</h2><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/028/779/original/1.png?1498596474" class="editor-image img-responsive" data-smartkarma-image-id="28779"></figure><div class="content-caption">Source: Custom Products</div><h2>On the positive side...</h2><p>We screened for names that have…</p>

As the top 5 factors in July are technical signals, clearly names up from April to June continue to go up in July. The strongest factor is the Relative Strength Index (RSI) with an information coefficient (IC) of above 8% followed by 3M Momentum. On the other side, there is Book Yield or PBR with a negative IC of 7%. Also companies with a high % of Retail Investors tend not to do well in July.    July Factor PerformanceSource: Custom ProductsOn the positive side...We screened for names that have…

July Is All About Momentum and Definitely Not About Value....