DoubleLine Shiller Enhanced CAPE webcast slides for the month of October 2018.
TAB I – DoubleLine Shiller Enhanced CAPE® Strategies
DoubleLine Shiller Enhanced CAPE® Structure
- The distinct structure of the DoubleLine Shiller Enhanced CAPE® Strategy allows investors to simultaneously access returns of the equity markets and fixed income markets. By using an equity index swap, $1 invested in the strategy provides approximately $1 of exposure to each market.
Q3 hedge fund letters, conference, scoops etc
These Are John Buckingham’s Stock Picks For 2021
The economy remains in distress, although there are signs of recovery underway. John Buckingham of Kovitz, editor of The Prudent Speculator newsletter, has found that value stocks typically outperform coming out of economic downturns. Thus, he argues that this is an excellent time to be a value investor. Q4 2020 hedge fund letters, conferences and Read More
DoubleLine Shiller Enhanced International CAPE®
- The distinct structure of the DoubleLine Shiller Enhanced International CAPE® Strategy allows investors to simultaneously access returns of the equity markets and fixed income markets. By using an equity index swap, $1 invested in the strategy provides approximately $1 of exposure to each market.
TAB II - From 10 to 11: Redefining Telecommunications
New GICS Sector
Evolution of Telecom to Communications Services
S&P 500 GICS Sector Weights
Relative CAPE® Old versus New: Communications Sector
Relative CAPE® Old versus New: Information Technology
Relative CAPE® Old versus New: Consumer Discretionary
TAB III - Smart Beta: Shiller Barclays CAPE® U.S. Sector Index
Shiller Barclays CAPE® U.S. Sector Index
What is the CAPE® Ratio?
- Acclaimed value investors Benjamin Graham and David Dodd noted in Security Analysis that equity valuations tend to follow a business cycle of 3-7 years
- The CAPE® Ratio was formulated in the seminal 1988 piece1 from Professor Robert Shiller and John Campbell.
- CAPE® = Cyclically Adjusted P/E (Price-to-Earnings)
- The CAPE® ratio seeks to assess longer term equity valuation by using an inflation adjusted earnings horizon that is 10 times longer than the traditional P/E measure
- Similar to the traditional P/E the CAPE® can be applied to a portfolio of equities, a sector or a broad based index
Relative CAPE® Indicator
- To account for idiosyncratic differences between sectors where CAPE® Ratios have historically been of different magnitudes one can construct a Relative CAPE® Ratio
- This may allow investors to compare sector valuations on a level playing field
See the full slides below.
