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The S&P 500 Macro Select stock index is up approximately 30% so far this year, outperforming both the capitalization-weighted and equal-weighted versions of the index.
Michael Kantro highlighted that their 50-stock, sector-neutral and equal-weighted portfolio is constructed based on analysis of the business cycle and anticipated fundamentals that people may pursue. Kantro said the objective is outperformance relative to benchmark indices.
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Kantro recently pointed to rising corporate margins driven by both cyclical and secular factors, noting gains beyond just large-cap companies in a previous update. He has also cautioned that S&P 500 price momentum could weaken without substantial earnings growth, referencing several market indicators in another recent warning. These observations set the context for his current focus on portfolio construction aimed at benchmark outperformance.