Now Is A Good Time For The Dogs Of The Dow Strategy

• The Dogs of the Dow have underperformed the Dow in 2019 and so far in 2020.
• This has set the stage for outperformance going forward.
• The yield structure of the Dow is now unusually skewed.
• To a greater degree than most other stocks, the "dogs" stocks make good "bonds" as well.

Q1 2020 hedge fund letters, conferences and more

The "Dogs of the Dow" is a strategy for managing the index by buying the ten highest yielding stocks (out of 30). This strategy assumes that the Dow stocks are enough like each other in "maturity" so that a yield advantage will allow one...