Betting Against the Sell Side – Follow-Up

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Graham Copley / Nick Lipinski

203.901.1629/203.989.0412

gcopley@/nlipinski@ssrllc.com

February 9th, 2017

Betting Against the Sell Side – Follow-Up

  • Today the FT has an article covering the subject that we covered in a piece of research in October – the underperformance of “most loved” stocks versus “least loved”.
    • The FT looked at the UK market across all sectors and showed exactly what we showed in the chemical space in the US – that the least loved group outperforms the most loved.
    • Link to FT Article
  • We have looked at the performance of the stocks that we identified back in October and what we showed at the time has continued.
    • The 5 most loved Chemical stocks at the time have underperformed the 5 least loved by 11% on average (in a little over 3 months).

Exhibit 1

Source: Capital IQ and SSR Analysis

  • For reference we show the most and least loved names in all of the other sectors we cover:

Exhibit 2

Source: Capital IQ and SSR Analysis

©2017, SSR LLC, 225 High Ridge Road, Stamford, CT 06905. All rights reserved. The information contained in this report has been obtained from sources believed to be reliable, and its accuracy and completeness is not guaranteed. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information and opinions contained herein.  The views and other information provided are subject to change without notice.  This report is issued without regard to the specific investment objectives, financial situation or particular needs of any specific recipient and is not construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not necessarily a guide to future results.

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