WEEKLY SECTOR ROTATION
Brian T. Hannon, CFA
Defensively-Oriented and Commodity Exposed Sector Rankings Remain Most Improved
The attractiveness rankings for the defensively-oriented (aerospace/defense, transportation,
healthcare and utilities) and commodity price exposed sectors (energy and basic materials) have
continued to show the most improvement over the last 12 months (see Table 4). While persistent
market volatility is translating into high volatility in our weekly rankings. For instance, the construction
and technology sector rankings have both reversed last week’s moves as weaker scores for technical
outlook drove lower rankings for these sectors. We also note that higher catalytic scores have
resulted in breakout improvement in the conglomerates sector ranking and the utilities sector ranking
has fallen due to lower catalytic scores. See Tables 5 and 6 for top-ranked names from the most
attractive sectors and bottom-ranked names from the least attractive sectors.
Brian T. Hannon, CFA
Founder, Director of Quantitative Equity Research
Qubit Research, LLC
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. While in R&D, he was awarded a patent for his role in the development of a reverse osmosis application for 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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