Best Research Ideas

Microstrategy – What’s in Style for 2021?

Momentum dominated for most of 2020 while value underperformed severely, leading to extreme crowding in megacap tech. Since the positive news on COVID-19 vaccines, however, a reversal is underway. With earnings recovery accelerating, the reversal trade could stretch until Q1 with another 15% upside for value stocks along with COVID-impacted baskets. Longer term, more sustainable value strategies such as GARP and GARY, backed by earnings revisions, will be in focus.

Desh Peramunetilleke, Global Head of Microstrategy