Summary & Objective
MarketGrader’s research team analyzed the performance of all ratings issued across all companies under coverage in its North American universe between January 1, 2008, and June 30, 2022. Ratings for companies listed in Canada and the U.S. were analyzed separately. The objective of the analysis was to determine whether MarketGrader’s ratings in each country generate any ‘alpha’ for long-term investors.
Methodology
This analysis is based on semi-annual snapshots of MarketGrader’s U.S. coverage, with the first snapshot of the equity universe taken on Dec. 31, 2007. On June 30, 2008, the next snapshot of the universe was taken, and individual company performance was measured for the first six-month period. Thereafter, the universe was tracked every six months with the most recent performance measurement taken on June 30, 2022. Using these semi-annual snapshots and the corresponding performance of the individual companies, equally weighted sample portfolios were constructed based on MarketGrader Grades. The portfolios were reconstituted and rebalanced (to equal-weight) semi-annually from each new universe snapshot. All performance figures are based on price-only returns.
