SocGen analysts Georgios Oikonomou and Andrew Lapthorne run their popular investment screens, modeled according to the criteria of legendary investors such as Benjamin Graham and Joel Greenblatt, across the emerging markets space.
Emerging markets’ October performance
Screen-wise performance during October was as follows:
Merton portfolio (long only) +4.1%
Worm Capital July 2020 Performance Update: Up 152% YTD
Worm Capital performance update for the month ended July 31, 2020. Q2 2020 hedge fund letters, conferences and more Long/Short Equity Growth Strategy Net Performance Long-Only Equity Growth Strategy Net Performance
Piotroski model (long only) +3.7%
Quality Income +2.8%
Graham & Rea (long-short) -1.3%
Value investors would be interested in the Graham screen returns
SocGen’s screen for Graham & Rea criteria showed the following performance in October across the various emerging regions:
The Graham and Rea model is based on a scoring system for stocks devised by Benjamin Graham and aeronautical engineer James Rea. Comprising 10 rules, this system is said to have outperformed the market in five out of six decades it was tested on, and more information can be found here.
Our resource page on Benjamin Graham can be referred to here.
Graham & Rea stock picks
The Joel Greenblatt screen
This screen, modeled after well-known investor Joel Greenblatt, returned negative -1% in emerging markets but was up 2.6% in Latin America.
Greenblatt is said to be a follower of the value-based investing criteria proposed by Graham and Buffett. He founded Gotham Capital, a firm that achieved 40% annualized returns between 1985 to 2005, a period of 20 years. His resource page can be found on Valuewalk here.