Basic Materials Sector Ranking Moves to Top as Construction Sector Falls

December 20, 2021
Brian T. Hannon, CFA
Retail Sector Rises to Top of Attractiveness Rankings
Fundamental and technical outlook scores, which are an indication of expected earnings and stock
price momentum, helped to propel the retail sector to the top spot in our attractiveness rankings.
Volatility in the rankings was significant this week as the basic materials and construction sectors
swapped positions, whereby the construction sector displaced the basic materials sector from the #2
spot. At the bottom end of our rankings, lower catalytic and technical scores have resulted in the
technology sector falling into the bottom 5 group. And the industrial products sector broke out of the
bottom 5 group due to improved fundamental and technical scores. See Tables 5 & 6 where we
highlight the most and least attractive names selected from the top-ranked and bottom-ranked
sectors, respectively.
Brian T. Hannon, CFA
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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