Market Performance
Performance was mixed in February on an equal-weight basis. Developed Europe and U.S. saw the strongest performance with prices rising by 2.1% and 1.6%, while Japan and Canada declined by 2.2% and 1.4%. Emerging Markets was mixed with underperformance led by Taiwan (-9.2%), while Brazil saw the strongest performance (6.5%).
Long-Short Performance
Looking at top-bottom decile spreads for January, Analyst Revision Model (ARM), Price Momentum (PMO), Combined Alpha Model (CAM), and MarketPsych Media Sentiment (MMS) saw the greatest breadth with positive decile spreads in most regions and countries covered in this report.
Hong Kong and China showed the strongest breadth, with positive decile spreads across all models. Notably, China achieved this feat for the second consecutive month. StarMine added value in Smart Holdings (SH), delivering the highest added-value Information Coefficient (IC) of 0.25 in Emerging Markets, followed by 0.19 in Developed Asia ex. Japan.
Long-Only Performance
When examining top decile performance on an absolute basis, United States, Developed Europe, Australia, Brazil, Korea, and China stood out with positive performance across all models. Conversely, Japan and India saw negative performance across all models (including benchmark equal-weight returns).
Compared to equal-weight returns, China exhibited positive relative performance across all models (for the second consecutive month), followed by Hong Kong and Emerging Markets (positive in all models except one).
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