ROIC
Sustained high ROIC on XETRA stocks from 2000 to 2025. 7.08% CAGR vs 7.30% SPY. No alpha, but the best max drawdown (-31.4%) and lowest volatility (20.37%) of any exchange tested. Quality as risk reducer, not return booster.
ROIC
Sustained high ROIC on BSE+NSE from 2000 to 2025. 15.55% CAGR vs 7.30% SPY. India is the only market where persistence alpha (+4.98%) is positive. The trade-off: 52% volatility and -56.9% max drawdown.
asset-light
We tested the asset-light composite score across 13 exchanges over 25 years. The light-heavy spread was positive on all 13 markets, ranging from +0.82% (Taiwan) to +16.22% (US). Capital efficiency separates winners from losers globally.
asset-light
We tested the asset-light composite score on Chinese A-shares (SHH + SHZ) over 25 years. Asset-light returned 3.17% vs -1.29% for asset-heavy: a 4.46% spread. SOE dynamics and the 2021 tech crackdown complicate the picture.
asset-light
We tested the asset-light composite score on Indian stocks (BSE + NSE) over 25 years. Asset-light returned 5.39% annually vs 1.60% for asset-heavy: a 3.79% spread. Smaller than the US, and India's capex-led growth cycle creates a headwind.
asset-light
We scored US stocks on asset turnover, capex intensity, and gross margin over 25 years. Asset-light companies (top 20%) returned 2.82% annually. Asset-heavy (bottom 20%) returned -13.40%. The 16% annual spread is consistent across every decade, but the signal works better as a filter than a...
free cash flow
We ran the same FCF yield screen across 8 stock exchanges from 2000 to 2025. Three beat SPY. UK beat FTSE 100 by 8.81% annually, Hong Kong beat Hang Seng by 8.58%. Japan beat Nikkei by 4.43%. Most markets work vs local benchmarks. Only three beat SPY because SPY was exceptional (7.85% CAGR).
free cash flow
We screened for high FCF yield on Hong Kong Stock Exchange stocks from 2000 to 2025. 10.22% CAGR, +8.58% excess over Hang Seng. In 2008, the portfolio lost only 5.5% while Hang Seng fell 16%. 72% win rate, 27% down capture. Hang Seng returned just 1.64% annually over the same 25 years.
free cash flow
We screened for high FCF yield on London Stock Exchange stocks from 2000 to 2025. 10.04% CAGR, +8.81% excess over FTSE 100. In 2008, the portfolio fell only 5.2% while FTSE 100 dropped 22%. Down capture of 21% with 193% up capture. Quality-filtered cash generators dominate flat UK markets.
free cash flow
We screened for high FCF yield on US stocks from 2000 to 2025. 10.70% CAGR vs 7.85% for the S&P 500. The portfolio only captured 36% of the market's downside while following up with 113% of its recoveries. FCF yield measures what a company actually earns after paying for everything it takes to...
sector rotation
Korea sector momentum rotation delivered 24.44% CAGR over 26 years with a down capture of just 16.46% — the lowest across all 14 exchanges we tested. $10,000 grew to $2.94 million. Healthcare and Consumer Defensive drove the rotation through Korea's aging demographics.
backtests
We ran a low-debt + Piotroski F-Score screen on 13 exchanges over 25 years. India leads at 14.05% CAGR with -2.02% down capture. Canada is the biggest surprise. Switzerland has the best Sharpe. Here''s the full global breakdown.