FANG Is So 2015… BARF In 2016 by Darin Milmeister of Extract Advisors
The world has been enamored by Facebook Inc (Nasdaq:FB), Amazon.com Inc (Nasdaq:AMZN), Netflix Inc. (Nasdaq:NFLX), and Alphabet Inc (Nasdaq:GOOG) – represented by the acronym, “FANG.” The four stocks gained an average of 82% in 2015 and collectively created more than $449 billion in equity value. These companies generated a combined $186 billion in revenue over the last 12 months.
We at Extract Capital wanted to create a meaningless acronym ourselves, “BARF.” These are huge, or relatively huge, well…. they were huge mining houses. BHP Billiton Ltd (ASX:BHP), Anglo American plc (LSE:AAL), Rio Tinto plc (LSE:RIO), and Freeport-McMoRan Inc (NYSE:FCX). The four stocks declined an average of 51% and lost $101 billion in equity value in 2015. The four companies generated a combined $130 billion in revenue over the last 12 months. YTD for 2016, these stocks have dropped another 22.9% on average through January 20.
Assets in private equity and venture capital strategies have seen significant growth in recent years. In comparison, assets in the hedge fund industry have experienced slowing growth rates. Q2 2021 hedge fund letters, conferences and more Over the six years to the end of 2020, hedge fund assets increased at a compound annual growth rate Read More
We are not espousing or implying any investment advice as it relates to the FANG or BARF stocks and we currently have no positions in any of the eight companies. Please draw any conclusions from the table below at your own peril:
FANG vs. BARF
1 Based on searches of company names on Google News Search