CAPS Portfolio

A fun Quartz article found that a portfolio comprised of U.S. companies whose names were all upper case (e.g. NVIDIA) had out-performed the S&P 500 Index in 2016. The article’s explanation: confident companies have confident names!

How would such a portfolio fare in the UK?

The following table lists the 14 FTSE 100 companies with (almost) all upper case names. Included in the table are the returns from the beginning of 2015.

Company TIDM Rtn (from 2015)
BP BP. 39.9
CRH CRH 36.8
RSA RSA 31.2
RELX REL 21.9
DCC DCC 18.5
HSBC HSBA 16.8
FTSE 100 UKX 12.4
WPP WPP 9.0
BAE Systems BA. 8.2
SSE SSE 3.3
GKN GKN 1.8
TUI AG TUI -15.0
BT BT.A -17.8
ITV ITV -38.4

And the following chart plots the performance of an equally-weighted portfolio of the 14 upper case companies benchmarked against the FTSE 100 Index.

CAPS portfolio

As in the US case – it works!

Why do investors bother with anything more complicated?

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