September 14, 2022
WEEKLY SECTOR ROTATION
Brian T. Hannon, CFA
Attractiveness Rankings for Basic Materials and Consumer Discretionary Stocks Retrace
Technical score volatility has resulted in retracement of the attractiveness ranking for basic materials stocks, as the sector ranking has fallen back into the bottom 5 group. Likewise, the consumer discretionary sector ranking has also fallen and retraced due to lower technical scores. In other moves, the transportation and business services sectors have swapped positions; where by, the business services sector has displaced the transportation sector from the top 5 group due to higher catalytic scores for the business services sector, contrasted with lower catalytic scores for transportation stocks. We also note that the ranking for the technology sector has moved upon higher catalytic scores, while higher valuation scores have resulted in further improvement in the conglomerates sector ranking. See Tables 5 and 6 for top-ranked names from the most attractive sectors and bottom-ranked names from the least attractive sectors.
Brian T. Hannon, CFA
Founder, Director of Quantitative Equity Research
Qubit Research, LLC
With an academic background in engineering and economics, Brian Hannon began his career in the chemicals industry at the Dupont Company where he held various positions in research & development, project management, and corporate finance. An early indication of his innovative nature occurred while in R&D; as Brian was awarded a patent for his role in the development of a reverse osmosis process for purifying chemicals used in the production of semiconductor devices (Patent#4,879,043: Manufacture of High Purity Hydrogen Peroxide by Using Reverse Osmosis”).
Pursuing his interest in the stock market, Brian made the transition to the investment management profession as a research analyst covering chemicals industry companies at the DuPont Pension Fund. He subsequently joined ASB Capital Management where he originated the unique approach to structuring multi-factor models that Polaris is based on. Brian moved on to Macquarie Investments (formerly Delaware Investment Management) where he produced an exceptional track record while serving as a senior portfolio manager on the institutional large-cap value team. After Brian left Macquarie, he founded Qubit Investments, LLC to launch an equity market neutral fund. The fund utilized an updated version of the Polaris multi-factor model, integrated with a systematic portfolio construction algorithm that Brian developed. He later became the director of equity research at Sturdivant & Co. and then Quoin Capital, LLC, which was prior to his current role as founder of Qubit Research, LLC, an independent equity research boutique. Brian holds a BS degree in chemical engineering and a BS in economics from Carnegie-Mellon University. He is also a CFA charter holder.
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