Duplicate

James O'Shaugnessy Cornerstone Growth 50 Qualifying

James O'Shaughnessy Cornerstone Growth is a growth investing strategy devised by US fund manager James O'Shaughnessy in his 1996 book, What Works on Wall Street. It combines value, momentum and growth factors, using the price-to-sales ratio, price momentum and earnings growth as its main rules. O'Shaughnessy wrote: "Marrying good value characteristics with price momentum is an excellent way to find 'cheap stocks on the mend'." He found that this strategy produced an annual compound return of 17% between 1963 and 2009. In 2012, O'Shaugnessy updated the strategy rules by replacing price-to-sales as the key value metric with 6 composited value factors.

To learn more about this strategy please click here »

This is an independent study based upon the methods of...
Picture of James O'Shaughnessy

James O'Shaughnessy

Founder and CEO of O'Shaughnessy Asset Management (OSAM). Wrote the seminal 1996 book "What Works on Wall Street”.

What Works on Wall Street, Fourth Edition: The Classic Guide to the Best-Performing Investment Strategies of All Time

by James O'Shaughnessy

From 1951 through 2004, the strategy had a real average annual return of almost 19%. However, the downside to that kind of performance was the volatility. The standard deviation from the average return (24.6% when not adjusted for inflation) was about 39%.

This screen uses the following criteria:

  • Mkt Cap £m > 100
  • P/S <= 1.5
  • Rank ( % Price Chg 6m ) > 50%
  • Rank ( % Price Chg 3m ) > 50%
  • EPS Gwth % > 0

Results are sorted by:

  • RS 1y in descending order


And limited to the first 50 Results


Can these rules be improved? Submit a suggestion »
Want to make your own version? Create a Duplicate

Performance Tracking


Returns FTSE 100
1 week 0.5% -1.8% 3.4% -4.8% -1.3% -0.3% 1.5% 0.2%
1 month 0.8% 0.5% 2.3% -8.0% 0.1% -3.6% 2.7% 0.7%
3 months 4.9% -6.3% 17.3% -16.0% 8.7% 0.7% 4.6% 4.2%
6 months 6.0% -11.9% 10.5% -27.5% 3.2% -8.9% -0.5% -0.7%
1 year 15.9% -3.3% 13.9% -3.5% 15.6% 6.2% 9.4% 2.5%
2 years 68.5% 56.1% 17.6% 60.3% 40.2% 37.7% 28.4% 14.1%
Annualised 15.2% 18.8% 9.9% 34.6% 22.1% 28.1% 26.5%
 
Risks
Max Drawdown -20.3% -25.5% -24.7% -31.7% -11.8% -21.1% -15.0%
Avg Holdings 21.2 24.2 25 25 19.7 25 23.9
Diversification Good Good Good Good Good Good Good

 Studies based on equal weighted portfolios of max 25 stocks rebalanced quarterly. Qualifying shares below updated daily. Past performance not indicative of future returns.



Please subscribe to see the companies that qualify for this independent study of the James O'Shaugnessy Cornerstone Growth Strategy.
Plans start from as little as $30 per month. 14 day FREE TRIAL available.