PS - Race update - lithium beats marijuana, crypto, China brand demand themes

In mid-December we had a bit of fun exploring which of the key speculative themes of calendar 2017 had run hardest on the ASX (see original post here).

Today we published the December update for the Equitable Investors Dragonfly Fund and included an update on that race. We declare lithium the winner (represented in Figure 1 below by the grey line with long dashes).

The indices presented are based on equal-weighted monthly returns for stocks identified as fitting each theme.

Figure 1: relative returns of four "buzz" sectors on the ASX (equal-weighted portfolios)

 source: Equitable Investors, Thomson Reuters, companies' data 

Equitable Investors has some exposure to the China theme directly through food brands and through food testing. This is the only one of the four themes detailed where there is significant revenue already flowing and the enterprise values, on average, have any real connection to a revenue base.


Figure 2: Average revenue & EV of stocks in each "buzz" category
 






  source: Equitable Investors, Thomson Reuters, companies' data 





















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