WEEKLY SECTOR ROTATION
Brian T. Hannon, CFA
Basic Materials Sector Ranking Moves to Top as Construction Sector Falls
Due to improved catalytic scores, the basic materials sector has achieved a top 5 sector
attractiveness ranking. While moving in the opposite direction, the construction sector has fallen out
of the top 5 group. We also note that the business services sector ranking has reversed last week’s
advance as fundamental outlook scores weakened. The industrial products sector has slipped into
the bottom 5 group due to lower scores for technical outlook. And we would be remiss if we did not
note that after several months as the bottom ranked sector, the healthcare sector has finally climbed
out of the bottom 5 group as catalytic properties have improved. In Tables 5 & 6 we highlight the most
and least attractive names selected from the top-ranked and bottom-ranked sectors, respectively.
Founder, Director of Quantitative Equity Research
Qubit Research, LLC
With an academic background in engineering and economics, Brian Hannon began his career in the chemicals industry at the Dupont Company where he held various positions in research & development, project management, and corporate finance. An early indication of his innovative nature occurred while in R&D; as Brian was awarded a patent for his role in the development of a reverse osmosis process for purifying chemicals used in the production of semiconductor devices (Patent# 4,879,043: Manufacture of High Purity Hydrogen Peroxide by Using Reverse Osmosis”).
Brian made the transition to the investment management profession as a research analyst covering
chemicals industry stocks in 1992 at the DuPont Pension Fund. In 1995 he joined ASB Capital
Management where he developed the first version of the multi-factor model that Polaris is based on.
From 1997 to 2006, Brian produced an exceptional track record while serving as a senior portfolio
manager at Macquarie Investments (formerly Delaware Investment Management) on their institutional
large-cap value team. In 2006, Brian founded Qubit Investments, LLC to launch an equity market
neutral fund. He later became the Director of Equity Research at Sturdivant & Co. and then Quoin
Capital, LLC in 2013 and 2020, respectively, which was prior to assuming his current role at Qubit
Research, LLC. Brian holds a BS degree in chemical engineering and a BS in economics from
Carnegie-Mellon University and has been a CFA charter holder since 1991.
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