Trade Alert – Factor Rotation Model
The recent outperformance of value over growth has pushed the relationship to an overbought level. Therefore, it is likely that growth outperforms value in the near term. This relationship triggered a trading signal in our Factor Rotation Model; as a result, we are rebalancing the model to favor growth stocks over value.
For context, during the 15-year period we used to back-test the model, the average duration a trading signal persisted was 129 days. Meanwhile, the minimum and maximum durations for trading signals were 16 days and 453 days, respectively.
Factor Rotation Model
- Shift to 80% growth and 20% value. Please see the transaction history in SimpleVisor for details.
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Nick Lane
Nick Lane Portfolio Manager, MS, CFA®
Nick earned an undergraduate business degree with a double major in finance and accounting and a Master of Science in finance from the University of Houston. While earning his graduate degree, Nick was an analyst and portfolio manager for the Cougar Investment Fund, the Bauer College of Business investment fund managed by select graduate students. Nick spends much of his spare time indulging in his passion for the outdoors via bass fishing, fly fishing for trout, saltwater fishing, and hunting, as well as spending quality time with his wife. Nick resides in Jersey Village with his wife, Vivianne, and their two dogs and cats.