value investing
Owner Earnings Yield returned 10.44% annually on HKSE-listed stocks from 2000 to 2025. That's +8.8% excess CAGR over the Hang Seng Index, which managed only 1.64% annually over the same period. Zero cash periods across all 25 years. The screen always found at least 26
Hong Kong stocks
We ran a sector-relative EV/EBITDA screen on 21 years of Hong Kong stock data from HKSE. The result: 0.91% CAGR vs 7.64% SPY, a negative Sharpe ratio, and down-capture of 102.95%. When SPY falls 10%, Hong Kong loses 10.3%. This is the worst result of
P/E compression
P/E compression on Hong Kong stocks returns -0.26% CAGR vs 7.64% for SPY, underperforming by 7.91% annually. The worst metric: 133% down-capture. When SPY lost 10%, this portfolio lost 13.3%. The strategy doesn't just fail to protect downside; it actively amplifies losses. This
sector rotation
Hong Kong's sector mean reversion result is a mixed picture. Over 26 years, the strategy returned 6.51% annualized in HKD, trailing the S&P 500's 8.02% by 1.51% per year. But the year-by-year story is anything but flat. 2009 delivered +105.53%
value investing
Low P/E screening on Hong Kong's HKSE returned 14.4% annually from 2000 to 2025. That's +12.6 percentage points above the Hang Seng Index, which managed just 1.8% CAGR over the same period. The strategy's Sharpe of 0.296 towers over
value investing
QARP on Hong Kong stocks returned 4.02% annually, beating the Hang Seng's 1.31% by 2.71% per year. The absolute returns are modest. But the local market was the problem, not the screen. QARP found real quality companies and generated meaningful alpha over the index in