August 31, 2022
WEEKLY SECTOR ROTATION
Brian T. Hannon, CFA
Rankings for Conglomerates and Aerospace/Defense Sectors Retrace
Under the influence of heightened market volatility, the conglomerates and aerospace/defense
attractiveness rankings have retraced last week’s moves.Lower scores across all metrics have
resulted in the conglomerates sector falling to the bottom ranking, while the aerospace/defense
sector has broken out of the bottom 5 group due to favorable technical and catalytic scores. In
other note worthy moves, the basic materials sector ranking has fallen due to valuation proper-
ties,while a lower consumer staples ranking has been influenced by a negative change in inves-
tor sentiment (i.e. behavioral preference factor). We also note that the construction sector has
edged higher on improved technical properties. See Tables 5 and 6 for top-ranked namesfrom
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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