Marc Reinganum — Finding the Traits of Stock Market Winners
American investment expert Marc Reinganum is currently a senior investment manager with the world’s second largest asset manager State Street Global Advisors. He’s been featured on the cover of Money Magazine, had press exposure in the Wall Street Journal, Fortune, Forbes, Bloomberg, Smart Money, etc., and has been interviewed by CNBC and NPR for his insights into the financial markets.
Skinning the Performance Cat
Examining the common characteristics of a group of winning stocks, Reinganum published the results in his famous article “The Anatomy of a Stock Market Winner” in the March/April 1988 edition of the Financial Analysts Journal. The study examined 222 stocks that were highlighted previously as winners (stocks that went up a minimum of 100% in a calendar year) in a publication by William O’Neil & Co. titled “The Greatest Stock Market Winners: 1970-1983”.
The goal of Reinganum’s study was to establish the characteristics common to these stocks prior to their rise to super stock status. He discovered a handful of variables that most of the big winners had in common prior to making their huge moves in the stock market. The factors generally fell in broad categories of value (modest valuation, growth – accelerated earnings and high momentum).
While the variables that led to the out-performance are intriguing in isolation, Reinganum found that it is the combination of the factors that led to the strategy’s success, or as he stated in the paper’s conclusion: “There may be more than one way to skin the performance cat.” This combination of factors is most likely the key success factor for all experts on the meetinvest platform.
Reinganum’s Background and Credentials
Reinganum earned an MBA (Beta Gamma Sigma) and Ph.D. from the University of Chicago. He was a director of the Financial Markets Institute and professor of Finance at the University of Iowa. He is a frequent presenter and author, whose work has appeared in the Journal of Financial Economics and the Journal of Portfolio Management, among others. He is the Phillips professor of finance in the College of Business Administration at the University of Iowa.
→ Read more about Marc Reinganum’s investing strategy on meetinvest and see how a portfolio would have performed using his strategy.