Official PayPal Seal

You are here: Home » » ICYMI: Crisis Outperformance

ICYMI: Crisis Outperformance

publication date: Oct 7, 2020
author/source: Brian Nelson, CFA
Hi everyone:
If you've read Value Trap, you know that I'm partial to the long ball in baseball. There's nothing quite like hitting a ball square and on the sweet spot of the bat. It's really something. You hear the crack, but you don't really feel the contact. 
It's smooth, and your adrenaline takes over. When you know you've hit it well, it's going to go. I'm actually a big fan of the bat flip, too. Sometimes, you don't know you even did it. As the say in the south side of Chicago, "You can put in on the board! Yes!"
At Valuentum, we've hit some homeruns. We estimate that the Best Ideas Newsletter portfolio generated a hypothetical return of about 34% during 2019, which bested the S&P 500. The long run performance is fantastic. We've shown that we can deliver when the pitcher is serving up fat pitches. 
But how did the Best Ideas Newsletter perform during the playoffs in the cold weather with a crafty lefty on the mound? That's right -- how did we do during the COVID-19 crisis? You know the COVID-19 ideas exceeded the market return by about 20 percentage points since their highlight in mid-March, but what about the Best Ideas Newsletter portfolio?
Today, we crunched the numbers. From February 15 through June 11, or through the course of the worst of the COVID-19 meltdown and its abrupt recovery, we estimate that the Best Ideas Newsletter portfolio exceeded the market return by about 7.8 percentage points. 
This type of outperformance for a large-cap focus is truly amazing, especially after a fantastic 2019. We can hit the long ball, but at our core, Valuentum is an all-around player. We can play solid defense with the game on the line. Just like in baseball, anticipating the next play is the key to success in relative outperformance. I hope you continue to enjoy your Valuentum membership.
Kind regards,
Brian Nelson, CFA
President, Investment Research
Valuentum Securities, Inc.

It's Here! 
The Second Edition of Value TrapOrder today!
Valuentum members have access to our 16-page stock reports, Valuentum Buying Index ratings, Dividend Cushion ratios, fair value estimates and ranges, dividend reports and more. Not a member? Subscribe today. The first 14 days are free.
Brian Nelson owns shares in SPY, SCHG, DIA, VOT, and QQQ. Some of the other securities written about in this article may be included in Valuentum's simulated newsletter portfolios. Contact Valuentum for more information about its editorial policies.

0 Comments Posted Leave a comment


Add a comment:

Sign in to comment on this entry. (Required)

The High Yield Dividend Newsletter, Best Ideas Newsletter, Dividend Growth Newsletter, Valuentum Exclusive publication, ESG Newsletter, and any reports, data and content found on this website are for information purposes only and should not be considered a solicitation to buy or sell any security. Valuentum is not responsible for any errors or omissions or for results obtained from the use of its newsletters, reports, commentary, data or publications and accepts no liability for how readers may choose to utilize the content. Valuentum is not a money manager, is not a registered investment advisor, and does not offer brokerage or investment banking services. The sources of the data used on this website and reports are believed by Valuentum to be reliable, but the data’s accuracy, completeness or interpretation cannot be guaranteed. Valuentum, its employees, and independent contractors may have long, short or derivative positions in the securities mentioned on this website. The High Yield Dividend Newsletter portfolio, ESG Newsletter portfolio, Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio are not real money portfolios. Performance, including that in the Valuentum Exclusive publication and additional options commentary feature, is hypothetical and does not represent actual trading. Actual results may differ from simulated information, results, or performance being presented. For more information about Valuentum and the products and services it offers, please contact us at