Small and Big Cap candidates for a July rebound
James Nicolaou
Baillieu Holst Ltd
Over the past 20 years, large-cap stocks that are down more than 10% on the year heading into June underperform the market by a further ~2.5% into the financial year end, before recovering 1% in July. However, historical data has confirmed that small caps have a more pronounced pattern where tax-loss selling candidates underperform by an average of ~5% during June before recovering 2% in July. In both large and small cap stocks, shorting potential tax-loss selling candidates has generated positive alpha in 18 out of the past 20 years for hedge funds. This has created a further headwind to our market on top of the Macro environment globally and more specifically the ‘Grexit’. Charts attached show 17 big cap and 19 small cap stocks that are candidates for a July rebound based on this scenario.
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James' personality exhibits a strong passion for the share market, born out of his hard working and loyal nature which compliments his outstanding commitment to client service and an unmatched level of enthusiasm. James has been working @ Baillieu Holst for 8+ yrs servicing some of the worlds biggest and best institutions, HNW/Professional investors, Family offices with equity investments, portfolio construction, trading strategy's, quantitative screening for stock selection & IPO's just to name a few. Specializing in industrial focused companies/businesses, typically upwards of $20m Mkt cap- $800m mkt cap; James genuinely enjoys building lasting relationships with his clients and the level of repeat and referral business he receives is a testament to this. Feel free to contact me if you would like to inquire further about me or my services.
jnicolaou@baillieuholst.com.au
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James Nicolaou
Institutional Research Sales & Trading
Baillieu Holst Ltd
James' personality exhibits a strong passion for the share market, born out of his hard working and loyal nature which compliments his outstanding commitment to client service and an unmatched level of enthusiasm. James has been working @ Baillieu...
Expertise
No areas of expertise
James Nicolaou
Institutional Research Sales & Trading
Baillieu Holst Ltd
James' personality exhibits a strong passion for the share market, born out of his hard working and loyal nature which compliments his outstanding commitment to client service and an unmatched level of enthusiasm. James has been working @ Baillieu...
Expertise
No areas of expertise
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