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The simple 4-part filter that a legacy fund has used to beat the S&P 500 for over 2 decades


Published on 2024-11-30 06:30:58 - Thomas Matters, WOPRAI
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  • The method was developed in the 1990s, and it's more of a filter than modern-day quantitative trading.

The article from Business Insider discusses a stock filter strategy that focuses on both fundamental analysis and momentum to identify stocks that outperform the market. It highlights a method developed by researchers at the University of Chicago, which combines traditional financial metrics like earnings growth, return on equity, and debt levels with momentum indicators such as recent price performance. This dual approach aims to select stocks that not only have strong financial health but also exhibit positive price trends, thereby potentially reducing risk while capitalizing on market trends. The strategy has reportedly shown to beat the market by a significant margin over various time frames, offering investors a systematic way to enhance their portfolio performance.

Read the Full Business Insider Article at:
[ https://www.businessinsider.com/stock-filter-for-fundamentals-momentum-that-beat-the-market-2024-11 ]
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