October was a sluggish month for the market, with the S&P 500 only registering minute growth of 0.05 percent, and retail said to be stuttering in the run-up to the festive period. Despite that, we were delighted to see our QVP strategy outperform and post a monthly return of 1.00 percent.
QVP, our domestic large-cap value strategy, continues to outperform the market on a long-term consistent basis and offer excellent value to our clients, as illustrated in the table below:
Lifetime performance of QVP compared to benchmarks.
Listed below are the top five performing stocks in November for our QVP strategy:
5. Valero Energy (VLO) +9.79%
Despite oil prices still suffering, Valero Energy had a fruitful time during November off the back of announcing a 25 percent increase their quarterly cash dividend in October.
The San Antonio-based company was identified as a buy by many analysts, including Goldman Sachs. Neil Mehta, of the investing giant, identified Valero as his top refining stock, stating that “strong gasoline demand, capital returns to shareholders and favorable capture rates due to low oil prices” should see the company continue to do well.
Oil prices have steadily fallen over the past year.
4. Nvidia (NVDA) +12.23%
The graphics chip maker published their third quarter financial results at the beginning of October and announced a net income of $246 million (a 6.5 percent year-on-year increase), far exceeding Wall Street expectations.
While the company’s gaming graphics businesses has flourished, Nvidia is now hoping to diversify its revenue sources by expanding into new areas such as corporate data centers and technology for cars.
They have also reaffirmed their commitment to the burgeoning eSports arena, releasing a new $200 gaming tablet and also building a new eSports lab to work more closely with pro gamers.
3. Xerox (XRX) +12.35%
The share price of Xerox had been falling for the past year but it seems that the interest of just one person can make a significant difference in the stock market.
Carl Icahn, noted businessman and investor, disclosed that he had acquired a 7.1 percent stake in the company on 23rd November, making him the second largest shareholder, and causing the stock price to shoot up. Icahn had stated that he thought the company was undervalued.
The company did also announce though that alongside the U.S. Defense Department’s technology arm, they had developed a self-destructing computer chip, which can be destroyed on command. It is thought that the chips could be used to make destructible cryptographic keys, rendering useless data that falls into the wrong hands.
Carl Icahn is worth upwards of $20 billion.
2. Applied Materials (AMAT) +12.56%
Another company to announce quarterly financial results with order growth and a 31 percent boost in profit, helped by a smaller income-tax charge, though revenue fell short of Wall Street expectations.
The chipmaker is targeting future growth in the memory industry, expecting the FinFET technology to be a key growth driver, while continuing to divest its Energy and Environmental Solutions division, which has been posting negative operating margins for the past few years.
1. Pilgrim’s Pride (PPC) +13.38%
The share price of Pilgrim’s had dropped by over 40 percent from the start of the year to the beginning of November, but the past month ended up being a positive one.
Following disappointing quarterly results which were announced in October, the company has stressed its commitment to financial discipline and continuing to offer value to shareholders.
The company has been making efforts to expand its margins by reducing operational costs. Its other initiatives include enhancing labor efficiency, optimal water usage, efficient management of waste water, and correct plant maintenance to maximize its productivity.
Pilgrim’s Pride will be hoping to avoid Avian fly outbreaks in the future.
See the chart below for a more in-depth look at the performance of QVP’s five top stocks during the month of November.
You can also explore the Kruse Asset Management website to find out more about our premier investment strategy: QVP.
QVP is also available through Prometheus, our new investment product which offers anybody the chance to invest like a millionaire.