What Worked Japan - 12 Feb 2016 - Retail names did well as Value / ROE factors continue to be beaten up

What Worked With TOPIX down 11% this week, FY1 PE was beaten up the most in the Value category. FY1 PE came in with a negative 39% IC. FY1 PE has only worked once in 2016. Low PE names that were hurt were Dowa Holdings down 28%, Taihieiyo Cement down 28% and NEXON down 24%.  Surprisingly low PBR names did not do that poorly given the huge drop in TOPIX. However PBR has not worked at all this year. Kaneka Corp was down 25%, Mitsubishi Materials was down 22% and Tokai Tokyo Financial was down 22%. Beta continued to be get destroyed this week. Beta has continued to do very poorly since the middle of October last year. Sysmex was down 26%, Aiful was down 22% and Toyo Tires was down 23%. Low ROE names also took a big hit this week. As with the other factors, ROE has really only done well once since the beginning of December last year. Names with a high percent of Retail Investors did do well this week and continue to be the only factor really working. Lion was up 2% and Oriental Land was up 2%.

Who Moved50 names moved on volume this week. There were only 9 names with positive returns in TOPIX 500 and none of them moved on strong volume. So on the negative side, Asahi Glass was down 26%, Yamaha Motors was down 23% and Nomura Holdings was down 22% all on strong volume.

 

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