No. of Recommendations: 10
I ran a screen from 2003 to 2022, taking the 500 largest firms with cash flow positive, and then taking the top 50 each year with the highest cash flow yield (cash flow per share divided by share price).
This resulted in an average return of 7% versus 9% for the S&P500.
Rebalancing monthly instead of annually didn't help much.
The market has a way of making ideas that seem sound in theory not necessarily providing market outperformance.
The 0.5% expense ratio for their fund also seems very high for doing nothing other than following an algorithm, which one person can do part time. I know, the marketing budget, but.. still.
- Manlobbi
