What Worked Japan - 16 Dec 2016 - Beta and Value took a hit after almost 3 months of strong performance

What Worked – As you know all good things come to an end and after a strong 3-month run, Value stopped working this week. Value, particularly low PBR names did not do well this week. The last time PBR did not work was in the last week of September. Low PBR names that underperformed were Sumitomo Metal Mining (5713) down 6% and Nippon Yusen Kabushiki Kaisha (9101) down 4%. However, high Beta names did a lot worse than Value this week.

High Beta names have not done this poorly since the beginning of September.  High Beta names that underperformed were Nintendo (7974) down 10%, Aiful (8515) down 6% and IHI Corp (7013) down 6%. Names up over the last month were also hurt this week. 1-month momentum names that were down were Itochu Corp (8001) down 4% and DIC (4631) down 4%. Quality was the only factor to stand out this week. High ROIC name did the best. Dentsu (4324) was up 14% and Taiyo Yuden (6976) was up also up 14%.

Who Moved – 51 names moved on volume this week.  The moves were spread pretty much evenly across the different sectors. On the positive side, Dentsu was up 14%, Taiyo Yuden was up 14% and Kagome (2811) was up 11%, all on strong volume. On the other side, SMC (6273) was down 10%, ACOM (8572) was down 9% and Komatsu (6301) was down 5%.


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