MISSION INTANGIBLE

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MISSION:INTANGIBLE, the blog of the Intangible Asset Finance Society, offers critical comments on intangible asset, corporate reputation, and finance; supplemented by quantitative reputation metrics. Intangible assets include business processes, patents, trademarks; reputations for ethics and integrity; quality, safety, sustainability, security, and resilience; and comprise 70% of the average company's value. MISSION:INTANGIBLE is a registered trademark of the Intangible Asset Finance Society.

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Exposing Reputation Value 2018 (End of year 2017)

C. HUYGENS - Saturday, December 30, 2017

RepuSPX and its bigger-tent cousin, RepuStars Variety, were designed to capture latent reputation value not evidenced by stock price. According to Technology Option Capital, the portfolio manager, reputational value is created through the actions of all stakeholders. If this value is not recognized by investors, then the equity should yield above average returns upon its discovery.

This is a semi-annual update of an ongoing test of the equity portfolio corollary to the basic Theory of Reputational Value.

Since 2002, weekly trailing 12-month returns of a simple reputation-based composite equity portfolio reconstituted algorithmically once a year from constituent members of the S&P500 composite equity index outperformed the S&P500 index 80.8% of the time. In 783 serial samples of trailing twelve month returns, RepuSPX generally outperformed SPX returning an excess of 7.8% on average (median 4.4%). In 92.2% of the cases of outperformance, the excess trailing 12-month returns were greater than 2%.

A time series plot shown below further demonstrates that there is useful information on latent (reputation-sourced) enterprise value in  Steel City Re's Reputational Value Metrics. The cumulative price returns through 31 December 2017 are 508.7% for RepuSPX and 132.9% for the S&P500.

Repustars 2017 December 30

C. HUYGENS - Friday, December 29, 2017

Weekly Reputation Index Metrics


At the close of trading December 29, 2017, REPUSPX, REPUVART, and REPUVAR stood at 6086.66, 4917.06 and 3869.71 respectively. Over the past four weeks, the three have changed by 1.09%, 1.93%, and 1.88%. The benchmark S&P500 Composite Index stood at 2328.77 (31 Dec 2001=1000) and has changed over the past four weeks by 1.19%. The current calendar year spread between REPUVAR and the S&P500 is 6.21%.

Over the trailing twelve months, REPUVART and REPUVAR have, respectively, changed by 27.30% and 25.76% respectively; the S&P500 Composite Index has changed by 18.87%. The trailing 12-month spread between REPUVAR and the S&P500 is 6.89%.

Over the trailing 36 months, the REPUVART and REPUVAR have changed by 32.94% and 27.04% respectively; the S&P 500 Composite Index has changed by 28.52%.

The trailing 12-month, and trailing 36-month returns for REPUSPX are 24.31%, and 28.52% respectively. The trailing 12-month spread between REPUSPX and the S&P500 is 5.45%.

The spreads between the S&P500-only index informed by reputation metrics, REPUSPX, and the broad market index informed by reputation metrics, REPUVAR, for the calendar year and for the trailing twelve months respectively are 1.41% and 1.44%.

Side Note: A description of the portfolio constituents and historical returns data from December 31, 2001 can be obtained on request from Technology Option Capital, its manager. Click Here.

Background

The RepuStars® Variety Corporate Reputation Index calculated by S&P/Dow Jones Indexes is the first-ever composite equity index based on a quantitative value strategy informed by the Steel City Re Reputational Value Metrics. The metrics comprise non-financial indicators of reputational value (RVM) and ranking (CRR).
The RepuStars Variety Corporate Reputation Index has two versions: a total returns index and a price index, whose ticker symbols are, respectively, REPUVART and REPUVAR.  Click on the ticker names for real time quotes.

The RepuStars Variety Corporate Reputation Index tracks up to 57 company stocks that appear to be underpriced relative to  Steel City Re’s proprietary Reputational Value Metrics™, which track 7400 companies weekly. The principles behind measuring reputational value are described in the book, Reputation, Stock Price, and You: Why the market rewards some companies and punishes others (2012, Apress).

The RepuStars indices are reconstituted annually in the first week of January and posted by S&P/Dow Jones Indexes in the third week. The Indices were last reconstituted at the close of the markets 23 January 2017.

REPUSPX  is a pocket index with portfolio constituents being selected algorithmically by the same criteria as the constituents for REPUVAR and REPUVART, except that the field of eligible companies is limited to constituents of the S&P500 composite equity index. Click here for an analysis of periodic returns.

The design of the portfolio is governed by principles of behavioral economics, market signaling, and the implicit timing arbitrage between the behaviors of equity stakeholder and all other stakeholders.

Reputation, Risk and Finance

Join our community on Linked-In and stay in the information flow and/or follow Twitter missives at #ReputationRisk.

Notices

S&P Dow Jones Indices is a registered trademark of S&P Dow Jones Indices LLC, a part of McGraw Hill Financial; RepuStars and Steel City Re” are registered trademarks of C. Huygens & Co. LLC. The method underpinning the RepuStars Variety indexes is subject to a pending patent assigned to C. Huygens & Co. LLC. S&P McGraw Hill Financial and its affiliate (S&P Dow Jones Indices) makes no representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and McGraw Hill Financial shall have no liability for any errors, omissions, or interruptions of any index or the data included therein. Past performance of an index is not an indication of future results. All information provided by S&P Dow Jones Indices is general in nature and not tailored to the needs of any person, entity or group of persons. S&P Dow Jones Indices receives compensation in connection with licensing its indices to third parties. It is not possible to invest directly in an index. Exposure to an asset class represented by an index is available through investable instruments offered by third parties that are based on that index. S&P Dow Jones Indices does not sponsor, endorse, sell, promote or manage any investment fund or other investment vehicle that seeks to provide an investment return based on the performance of any Index. Investment products based on the RepuStars Variety Corporate Reputation Indexes are not sponsored, endorsed, sold or promoted by Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC, or their respective affiliates and none of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC and their respective affiliates make any representation regarding the advisability of investing in such products. Inclusion of a company in any of the indexes in this piece does not in any way reflect an opinion of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC or any of their respective affiliates on the investment merits of such company. None of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC or any of their respective affiliates is providing investment advice in connection with these indexes.

Repustars 2017 December 23

C. HUYGENS - Saturday, December 23, 2017

Weekly Reputation Index Metrics


At the close of trading December 22, 2017, REPUSPX, REPUVART, and REPUVAR stood at 6063.48, 4923.52 and 3874.79 respectively. Over the past four weeks, the three have changed by 2.48%, 3.53%, and 3.41%. The benchmark S&P500 Composite Index stood at 2337.24 (31 Dec 2001=1000) and has changed over the past four weeks by 3.11%. The current calendar year spread between REPUVAR and the S&P500 is 5.94%.

Over the trailing twelve months, REPUVART and REPUVAR have, respectively, changed by 27.45% and 25.83% respectively; the S&P500 Composite Index has changed by 18.68%. The trailing 12-month spread between REPUVAR and the S&P500 is 7.15%.

Over the trailing 36 months, the REPUVART and REPUVAR have changed by 34.18% and 28.18% respectively; the S&P 500 Composite Index has changed by 28.87%.

The trailing 12-month, and trailing 36-month returns for REPUSPX are 22.76%, and 28.87% respectively. The trailing 12-month spread between REPUSPX and the S&P500 is 4.08%.

The spreads between the S&P500-only index informed by reputation metrics, REPUSPX, and the broad market index informed by reputation metrics, REPUVAR, for the calendar year and for the trailing twelve months respectively are 2.04% and 3.07%.

Side Note: A description of the portfolio constituents and historical returns data from December 31, 2001 can be obtained on request from Technology Option Capital, its manager. Click Here.

Background

The RepuStars® Variety Corporate Reputation Index calculated by S&P/Dow Jones Indexes is the first-ever composite equity index based on a quantitative value strategy informed by the Steel City Re Reputational Value Metrics. The metrics comprise non-financial indicators of reputational value (RVM) and ranking (CRR).
The RepuStars Variety Corporate Reputation Index has two versions: a total returns index and a price index, whose ticker symbols are, respectively, REPUVART and REPUVAR.  Click on the ticker names for real time quotes.

The RepuStars Variety Corporate Reputation Index tracks up to 57 company stocks that appear to be underpriced relative to  Steel City Re’s proprietary Reputational Value Metrics™, which track 7400 companies weekly. The principles behind measuring reputational value are described in the book, Reputation, Stock Price, and You: Why the market rewards some companies and punishes others (2012, Apress).

The RepuStars indices are reconstituted annually in the first week of January and posted by S&P/Dow Jones Indexes in the third week. The Indices were last reconstituted at the close of the markets 23 January 2017.

REPUSPX  is a pocket index with portfolio constituents being selected algorithmically by the same criteria as the constituents for REPUVAR and REPUVART, except that the field of eligible companies is limited to constituents of the S&P500 composite equity index. Click here for an analysis of periodic returns.

The design of the portfolio is governed by principles of behavioral economics, market signaling, and the implicit timing arbitrage between the behaviors of equity stakeholder and all other stakeholders.

Reputation, Risk and Finance

Join our community on Linked-In and stay in the information flow and/or follow Twitter missives at #ReputationRisk.

Notices

S&P Dow Jones Indices is a registered trademark of S&P Dow Jones Indices LLC, a part of McGraw Hill Financial; RepuStars and Steel City Re” are registered trademarks of C. Huygens & Co. LLC. The method underpinning the RepuStars Variety indexes is subject to a pending patent assigned to C. Huygens & Co. LLC. S&P McGraw Hill Financial and its affiliate (S&P Dow Jones Indices) makes no representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and McGraw Hill Financial shall have no liability for any errors, omissions, or interruptions of any index or the data included therein. Past performance of an index is not an indication of future results. All information provided by S&P Dow Jones Indices is general in nature and not tailored to the needs of any person, entity or group of persons. S&P Dow Jones Indices receives compensation in connection with licensing its indices to third parties. It is not possible to invest directly in an index. Exposure to an asset class represented by an index is available through investable instruments offered by third parties that are based on that index. S&P Dow Jones Indices does not sponsor, endorse, sell, promote or manage any investment fund or other investment vehicle that seeks to provide an investment return based on the performance of any Index. Investment products based on the RepuStars Variety Corporate Reputation Indexes are not sponsored, endorsed, sold or promoted by Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC, or their respective affiliates and none of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC and their respective affiliates make any representation regarding the advisability of investing in such products. Inclusion of a company in any of the indexes in this piece does not in any way reflect an opinion of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC or any of their respective affiliates on the investment merits of such company. None of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC or any of their respective affiliates is providing investment advice in connection with these indexes.

Looming Reputation Risk Explosion

C. HUYGENS - Wednesday, December 20, 2017
The recent stock market rise has masked weaknesses that could lead to massive losses linked to corporate reputational crises in the coming year, according to research conducted by Steel City Re, which analyzes reputational risk and provides insurance to protect companies and their leadership.

A number of companies have undergone reputational crises in the past year and, as a result, have significantly underperformed compared to their industry peers. Despite this, they still have seen their market caps rise – temporarily quelling stakeholder anger and reducing the severity of losses one might otherwise expect. When the equities markets go through an inevitable correction, those companies will likely sustain the biggest losses and, once again, become the focus stakeholder hostility – leading to a potential avalanche of reputational attacks and related financial losses.

This study comes a year after Steel City Re research showed a 461% increase in corporate reputation-related losses during the five years leading up to and ending in 2016. Key findings of the new study, which can be found here, include:

  • Factors leading to reputation related losses have become more extreme, including the weaponization of social media.
  • A rising stock market has created a false sense of security among certain companies and their stakeholders.
  • Prominent activist investors, often the catalyst for stakeholder anger, have been less effective, but smaller activists with less capital have emerged, targeting smaller companies.
Looking to 2018, a market correction will expose companies with reputational issues, compelling activists to attack and stakeholders, the media and political figures to unleash pent-up anger at corporate executives and board members. As a result, companies will experience losses in market cap, revenue, earnings and margins that could as much as double those experienced in the past year.

Dr. Nir Kossovsky, CEO of Steel City Re, said: “Warren Buffet’s saying that you can only tell who’s been swimming naked when the tide goes out is an apt description of the current environment. After witnessing the reputational bloodbath of 2016, quality companies committed to emerging unscathed in 2018 must communicate the improved quality of their governance and build reputational defenses that will insulate them when the inevitable onslaught occurs.”

The risk of reputation value loss was determined through a multi-year loss simulation experience based on a standard insurance parametric model of reputational value metrics. The actuarial database comprises approximately 5.65 million measures derived from a median of 7,313 public companies weekly for 823 continuous weeks.

Repustars 2017 December 16

C. HUYGENS - Saturday, December 16, 2017

Weekly Reputation Index Metrics


At the close of trading December 15, 2017, REPUSPX, REPUVART, and REPUVAR stood at 5953.85, 4863.86 and 3827.84 respectively. Over the past four weeks, the three have changed by 1.16%, 3.52%, and 3.40%. The benchmark S&P500 Composite Index stood at 2330.68 (31 Dec 2001=1000) and has changed over the past four weeks by 3.76%. The current calendar year spread between REPUVAR and the S&P500 is 4.77%.

Over the trailing twelve months, REPUVART and REPUVAR have, respectively, changed by 24.25% and 22.65% respectively; the S&P500 Composite Index has changed by 18.29%. The trailing 12-month spread between REPUVAR and the S&P500 is 4.36%.

Over the trailing 36 months, the REPUVART and REPUVAR have changed by 40.45% and 34.15% respectively; the S&P 500 Composite Index has changed by 35.64%.

The trailing 12-month, and trailing 36-month returns for REPUSPX are 19.98%, and 35.64% respectively. The trailing 12-month spread between REPUSPX and the S&P500 is 1.69%.

The spreads between the S&P500-only index informed by reputation metrics, REPUSPX, and the broad market index informed by reputation metrics, REPUVAR, for the calendar year and for the trailing twelve months respectively are 2.74% and 2.67%.

Side Note: A description of the portfolio constituents and historical returns data from December 31, 2001 can be obtained on request from Technology Option Capital, its manager. Click Here.

Background

The RepuStars® Variety Corporate Reputation Index calculated by S&P/Dow Jones Indexes is the first-ever composite equity index based on a quantitative value strategy informed by the Steel City Re Reputational Value Metrics. The metrics comprise non-financial indicators of reputational value (RVM) and ranking (CRR).
The RepuStars Variety Corporate Reputation Index has two versions: a total returns index and a price index, whose ticker symbols are, respectively, REPUVART and REPUVAR.  Click on the ticker names for real time quotes.

The RepuStars Variety Corporate Reputation Index tracks up to 57 company stocks that appear to be underpriced relative to  Steel City Re’s proprietary Reputational Value Metrics™, which track 7400 companies weekly. The principles behind measuring reputational value are described in the book, Reputation, Stock Price, and You: Why the market rewards some companies and punishes others (2012, Apress).

The RepuStars indices are reconstituted annually in the first week of January and posted by S&P/Dow Jones Indexes in the third week. The Indices were last reconstituted at the close of the markets 23 January 2017.

REPUSPX  is a pocket index with portfolio constituents being selected algorithmically by the same criteria as the constituents for REPUVAR and REPUVART, except that the field of eligible companies is limited to constituents of the S&P500 composite equity index. Click here for an analysis of periodic returns.

The design of the portfolio is governed by principles of behavioral economics, market signaling, and the implicit timing arbitrage between the behaviors of equity stakeholder and all other stakeholders.

Reputation, Risk and Finance

Join our community on Linked-In and stay in the information flow and/or follow Twitter missives at #ReputationRisk.

Notices

S&P Dow Jones Indices is a registered trademark of S&P Dow Jones Indices LLC, a part of McGraw Hill Financial; RepuStars and Steel City Re” are registered trademarks of C. Huygens & Co. LLC. The method underpinning the RepuStars Variety indexes is subject to a pending patent assigned to C. Huygens & Co. LLC. S&P McGraw Hill Financial and its affiliate (S&P Dow Jones Indices) makes no representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and McGraw Hill Financial shall have no liability for any errors, omissions, or interruptions of any index or the data included therein. Past performance of an index is not an indication of future results. All information provided by S&P Dow Jones Indices is general in nature and not tailored to the needs of any person, entity or group of persons. S&P Dow Jones Indices receives compensation in connection with licensing its indices to third parties. It is not possible to invest directly in an index. Exposure to an asset class represented by an index is available through investable instruments offered by third parties that are based on that index. S&P Dow Jones Indices does not sponsor, endorse, sell, promote or manage any investment fund or other investment vehicle that seeks to provide an investment return based on the performance of any Index. Investment products based on the RepuStars Variety Corporate Reputation Indexes are not sponsored, endorsed, sold or promoted by Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC, or their respective affiliates and none of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC and their respective affiliates make any representation regarding the advisability of investing in such products. Inclusion of a company in any of the indexes in this piece does not in any way reflect an opinion of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC or any of their respective affiliates on the investment merits of such company. None of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC or any of their respective affiliates is providing investment advice in connection with these indexes.

Xerox: Sharks are Back!

C. HUYGENS - Wednesday, December 13, 2017
Xerox -- no repellent, sharks return! 20% of US companies targeted in 2017 previously targeted in past 4 years. Qualifying and being underwritten for Reputation Assurance, often called a "warranty on governance," can help ward off attacks.

The US printer and photocopier company bowed to pressure from Icahn nearly two years ago to split itself into two, a hardware and services business.

Read more in Financial Times.

Read more on activist investors and reputation risk.

Repustars 2017 December 9

C. HUYGENS - Saturday, December 09, 2017

Weekly Reputation Index Metrics


At the close of trading December 8, 2017, REPUSPX, REPUVART, and REPUVAR stood at 5977.20, 4821.34 and 3795.92 respectively. Over the past four weeks, the three have changed by 3.03%, 4.53%, and 4.41%. The benchmark S&P500 Composite Index stood at 2309.51 (31 Dec 2001=1000) and has changed over the past four weeks by 2.68%. The current calendar year spread between REPUVAR and the S&P500 is 4.82%.

Over the trailing twelve months, REPUVART and REPUVAR have, respectively, changed by 20.75% and 19.23% respectively; the S&P500 Composite Index has changed by 18.04%. The trailing 12-month spread between REPUVAR and the S&P500 is 1.19%.

Over the trailing 36 months, the REPUVART and REPUVAR have changed by 33.29% and 27.30% respectively; the S&P 500 Composite Index has changed by 28.72%.

The trailing 12-month, and trailing 36-month returns for REPUSPX are 19.78%, and 28.72% respectively. The trailing 12-month spread between REPUSPX and the S&P500 is 1.73%.

The spreads between the S&P500-only index informed by reputation metrics, REPUSPX, and the broad market index informed by reputation metrics, REPUVAR, for the calendar year and for the trailing twelve months respectively are 1.25% and -0.54%.

Side Note: A description of the portfolio constituents and historical returns data from December 31, 2001 can be obtained on request from Technology Option Capital, its manager. Click Here.

Background

The RepuStars® Variety Corporate Reputation Index calculated by S&P/Dow Jones Indexes is the first-ever composite equity index based on a quantitative value strategy informed by the Steel City Re Reputational Value Metrics. The metrics comprise non-financial indicators of reputational value (RVM) and ranking (CRR).
The RepuStars Variety Corporate Reputation Index has two versions: a total returns index and a price index, whose ticker symbols are, respectively, REPUVART and REPUVAR.  Click on the ticker names for real time quotes.

The RepuStars Variety Corporate Reputation Index tracks up to 57 company stocks that appear to be underpriced relative to  Steel City Re’s proprietary Reputational Value Metrics™, which track 7400 companies weekly. The principles behind measuring reputational value are described in the book, Reputation, Stock Price, and You: Why the market rewards some companies and punishes others (2012, Apress).

The RepuStars indices are reconstituted annually in the first week of January and posted by S&P/Dow Jones Indexes in the third week. The Indices were last reconstituted at the close of the markets 23 January 2017.

REPUSPX  is a pocket index with portfolio constituents being selected algorithmically by the same criteria as the constituents for REPUVAR and REPUVART, except that the field of eligible companies is limited to constituents of the S&P500 composite equity index. Click here for an analysis of periodic returns.

The design of the portfolio is governed by principles of behavioral economics, market signaling, and the implicit timing arbitrage between the behaviors of equity stakeholder and all other stakeholders.

Reputation, Risk and Finance

Join our community on Linked-In and stay in the information flow and/or follow Twitter missives at #ReputationRisk.

Notices

S&P Dow Jones Indices is a registered trademark of S&P Dow Jones Indices LLC, a part of McGraw Hill Financial; RepuStars and Steel City Re” are registered trademarks of C. Huygens & Co. LLC. The method underpinning the RepuStars Variety indexes is subject to a pending patent assigned to C. Huygens & Co. LLC. S&P McGraw Hill Financial and its affiliate (S&P Dow Jones Indices) makes no representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and McGraw Hill Financial shall have no liability for any errors, omissions, or interruptions of any index or the data included therein. Past performance of an index is not an indication of future results. All information provided by S&P Dow Jones Indices is general in nature and not tailored to the needs of any person, entity or group of persons. S&P Dow Jones Indices receives compensation in connection with licensing its indices to third parties. It is not possible to invest directly in an index. Exposure to an asset class represented by an index is available through investable instruments offered by third parties that are based on that index. S&P Dow Jones Indices does not sponsor, endorse, sell, promote or manage any investment fund or other investment vehicle that seeks to provide an investment return based on the performance of any Index. Investment products based on the RepuStars Variety Corporate Reputation Indexes are not sponsored, endorsed, sold or promoted by Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC, or their respective affiliates and none of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC and their respective affiliates make any representation regarding the advisability of investing in such products. Inclusion of a company in any of the indexes in this piece does not in any way reflect an opinion of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC or any of their respective affiliates on the investment merits of such company. None of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC or any of their respective affiliates is providing investment advice in connection with these indexes.

Repustars 2017 December 2

C. HUYGENS - Saturday, December 02, 2017

Weekly Reputation Index Metrics


At the close of trading December 1, 2017, REPUSPX, REPUVART, and REPUVAR stood at 6021.15, 4823.92 and 3798.42 respectively. Over the past four weeks, the three have changed by 3.71%, 3.35%, and 3.20%. The benchmark S&P500 Composite Index stood at 2301.42 (31 Dec 2001=1000) and has changed over the past four weeks by 2.10%. The current calendar year spread between REPUVAR and the S&P500 is 5.31%.

Over the trailing twelve months, REPUVART and REPUVAR have, respectively, changed by 25.48% and 23.91% respectively; the S&P500 Composite Index has changed by 20.59%. The trailing 12-month spread between REPUVAR and the S&P500 is 3.32%.

Over the trailing 36 months, the REPUVART and REPUVAR have changed by 33.07% and 27.06% respectively; the S&P 500 Composite Index has changed by 27.86%.

The trailing 12-month, and trailing 36-month returns for REPUSPX are 24.29%, and 27.86% respectively. The trailing 12-month spread between REPUSPX and the S&P500 is 3.70%.

The spreads between the S&P500-only index informed by reputation metrics, REPUSPX, and the broad market index informed by reputation metrics, REPUVAR, for the calendar year and for the trailing twelve months respectively are 0.45% and -0.38%.

Side Note: A description of the portfolio constituents and historical returns data from December 31, 2001 can be obtained on request from Technology Option Capital, its manager. Click Here.

Background

The RepuStars® Variety Corporate Reputation Index calculated by S&P/Dow Jones Indexes is the first-ever composite equity index based on a quantitative value strategy informed by the Steel City Re Reputational Value Metrics. The metrics comprise non-financial indicators of reputational value (RVM) and ranking (CRR).
The RepuStars Variety Corporate Reputation Index has two versions: a total returns index and a price index, whose ticker symbols are, respectively, REPUVART and REPUVAR.  Click on the ticker names for real time quotes.

The RepuStars Variety Corporate Reputation Index tracks up to 57 company stocks that appear to be underpriced relative to  Steel City Re’s proprietary Reputational Value Metrics™, which track 7400 companies weekly. The principles behind measuring reputational value are described in the book, Reputation, Stock Price, and You: Why the market rewards some companies and punishes others (2012, Apress).

The RepuStars indices are reconstituted annually in the first week of January and posted by S&P/Dow Jones Indexes in the third week. The Indices were last reconstituted at the close of the markets 23 January 2017.

REPUSPX  is a pocket index with portfolio constituents being selected algorithmically by the same criteria as the constituents for REPUVAR and REPUVART, except that the field of eligible companies is limited to constituents of the S&P500 composite equity index. Click here for an analysis of periodic returns.

The design of the portfolio is governed by principles of behavioral economics, market signaling, and the implicit timing arbitrage between the behaviors of equity stakeholder and all other stakeholders.

Reputation, Risk and Finance

Join our community on Linked-In and stay in the information flow and/or follow Twitter missives at #ReputationRisk.

Notices

S&P Dow Jones Indices is a registered trademark of S&P Dow Jones Indices LLC, a part of McGraw Hill Financial; RepuStars and Steel City Re” are registered trademarks of C. Huygens & Co. LLC. The method underpinning the RepuStars Variety indexes is subject to a pending patent assigned to C. Huygens & Co. LLC. S&P McGraw Hill Financial and its affiliate (S&P Dow Jones Indices) makes no representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and McGraw Hill Financial shall have no liability for any errors, omissions, or interruptions of any index or the data included therein. Past performance of an index is not an indication of future results. All information provided by S&P Dow Jones Indices is general in nature and not tailored to the needs of any person, entity or group of persons. S&P Dow Jones Indices receives compensation in connection with licensing its indices to third parties. It is not possible to invest directly in an index. Exposure to an asset class represented by an index is available through investable instruments offered by third parties that are based on that index. S&P Dow Jones Indices does not sponsor, endorse, sell, promote or manage any investment fund or other investment vehicle that seeks to provide an investment return based on the performance of any Index. Investment products based on the RepuStars Variety Corporate Reputation Indexes are not sponsored, endorsed, sold or promoted by Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC, or their respective affiliates and none of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC and their respective affiliates make any representation regarding the advisability of investing in such products. Inclusion of a company in any of the indexes in this piece does not in any way reflect an opinion of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC or any of their respective affiliates on the investment merits of such company. None of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC or any of their respective affiliates is providing investment advice in connection with these indexes.

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