* Updated Most/Least preferred list
Most preferred
- ArcelorMittal: We are positive on steel margins and view valuation as compelling.
- Lanxess: Good exposure to the most significant self-help plan in European Chems.
- Solvay: Can reach Q3 cons vs. peers whose consensus earnings ests are too high.
Least Preferred
- Glencore: Overvalued, leveraged to weak coal prices.
- K+S: Continue to see material risks in the Ag sector, low dividend yield.
- Akzo Noble: Consensus is complacent around the volume outlook for Deco.
--> Stocks Added and Removed
In this note, we update our Most and Least Preferred Lists (MPL and LPL) of stocks selected from our coverage universe. We also report the performance of the MPL and LPL, and of two strategies based on these lists, the MLP Market Neutral (MN)
and Long/Short (L/S) strategies, since our last publication. The historical performance of the lists and strategies since inception, and the calculation methodologies used, are provided in this report.
--> Performance of MN strategy over previous period: -1.5%
Since our last publication on 1 Sep 2014 until the close on 30 Sep 2014, the MLP MN strategy declined by 1.5%, as the MPL declined by 5.23% and the LPL increased by 3.73%. Over the same period, the STXE 600 Index increased by 0.17% while the S&P EU350 Mats E Index declined by 4.24%.
--> Performance of MN strategy over past 12 months / since inception: +6.68% / +110.28%
Over the 12-month period from 30 Sep 2013 to 30 Sep 2014, the cumulative performance of the MLP MN strategy was +6.68%, as the MPL increased by 9.33% and the LPL declined by 1.47%. Over the same period, the STXE 600 Index increased by 14.16%, while the S&P EU350 Mats E Index increased by 5.26%. Since inception on 14 Mar 2008 to 30 Sep 2014, the cumulative performance of the MLP MN strategy was +110.28%, as the MPL increased by 74.33% and the LPL increased by 21.18%. Over the same period, the STXE 600 Index increased by 44.41%, while the S&P EU350 Mats E Index increased by 6.12%.