Weak Balance Sheets Best Performing Basket YTD: Goldman

Companies with weak balance sheets continue to be the most popular with investors, continuing a streak that began at the end of 2012 and has made it the best performing of Goldman Sacs strategy baskets, gaining 16% through July 18, nearly double the S&P 500’s growth over the same period. High Sharpe Ratio stocks were next best with 12% gains, followed by High Hedge Fund Concentration (11%). The worst performing strategy baskets so far this year are High Revenue Growth, High Quality Stock, and Low Hedge Fund Concentration, all of which returned 6%.

Weak balance sheets a liability if rates go up next year

“Our...