FA Whitepapers


March 2017  

The Ups and Downs of Sector Rotation

Lack of discipline and patience has been one of the biggest challenges for investors over the years—in fact, emotional selling during periods of under-performance can really hurt long term returns. Our latest research — The Ups and Downs of Sector Rotation — provides valuable insight on how the discipline of sector rotation strategies can yield quite significant over-performance over time.

Highlights include:
  • How sector rotation strategies have performed over long time horizons and the risks involved to realize the returns, using the Ken French Data Library of 48 industry groups;
  • The criticality of the next 6 to 24 months once the strategy’s relative performance bottomed out; and
  • Annualized return of the top quintile was 14.1% versus 7.7% for the bottom quintile, and 9.5% for the market.

- Read More