BofA Finds Market-Beating Returns in Index of Most-Hated Stocks
- Most-shorted, most-ignored equities combined in hate index
- BofA says strategy tripled return of S&P 500 in past year
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Everyone knows the key to investing is finding an unloved gem. New data show the rewards of taking that philosophy to an extreme.
In life, there’s people you ignore, people you dislike, and people you flat-out revile. Analysts at Bank of America took those facts to the market and built an overlay for contrarian stock picking. Some companies are neglected by mutual funds, others are shorted by hedge funds. Combine them and you get the all-hate index whose return tripled the S&P 500 in the past year.