Where It Might Be Worth Taking a Second Look
How the Sector Identifies Opportunities
The data set is deliberately broad and includes, among other things , the BofA Fund Manager Survey, 13F filings from institutional investors, retail investor sentiment, and other market and positioning indicators. This data helps provide a better understanding of how different investor groups are currently positioned and where expectations are leaning particularly strongly in one direction.
The key factor here is not simply which sector is currently popular or unpopular. The focus is primarily on extremes, changes, and contradictions. Where is positioning particularly one-sided? Where is sentiment shifting? And where are price movements diverging from what the market consensus expects?
Three Notable Trends in September
Biggest Winner: Blockchain and Crypto
Blockchain and crypto posted the strongest gain last month, up 11%.
Biggest Climber: Consumer Staples
Consumer staples moved up five spots to rank 7.
Biggest Faller: Industrials
The industrials sector fell three spots to rank 12.
What does the Sector Radar mean for the Tareno Hawk-Eye certificate?
The Tareno Hawk-Eye Sector Radar is not a top-down allocation model. Sentiment and positioning therefore do not represent a direct buy or sell signal.
Rather, the Radar sector serves as an additional analytical component within the Tareno Hawk-Eye approach. It helps identify areas of the market where expectations have become particularly one-sided and where it might therefore be worthwhile to take a closer look at individual companies.
The actual investment decision regarding the Tareno Hawk-Eye Certificate continues to be made at the company level. Sector positioning results from the selection of individual securities, not the other way around.
The consensus doesn’t necessarily have to be wrong. However, the more one-sided it becomes, the more important the question becomes: How much of this is already priced into the market?
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Disclaimer
This document has been prepared for marketing and informational purposes and does not constitute an offer or a solicitation to subscribe to, buy, or sell shares of this investment fund. It does not constitute investment advice. Only the current fund documents (in particular, the prospectus and KID) are exclusively authoritative. Past performance is not a reliable indicator of future results.
Images: Marijke Vosmeer, Luzia Hunziker, Jürg Kaufmann, Istock, Unsplash / Graphics: Tareno AG / Bloomberg