Screening Recent Listings by Turnover and Ownership Concentration

Summary

The stated screen looks for stocks with turnover between 3% and 12%, a listing year of 2021, and ownership concentration below 20%. The article treats lower concentration as a sign of more dispersed ownership and suggests that the turnover band may help narrow the universe. It also discusses possible additions such as profitability, valuation, liquidity, market capitalization, and measures of ownership quality.

The article gives no backtest, comparison, or evidence that this combination predicts returns. It notes that the narrow criteria can miss attractive companies and do not capture future prospects or governance structure. There is also a mismatch between the prose and the sample code: the code applies a 3-to-12 range to a field labeled as concentration, while the prose assigns that range to turnover and sets concentration below 20%. The implementation should therefore be checked against reliable field definitions before use; no entry, exit, or position-sizing rules are provided.

Key ideas

• The prose screen combines 2021 listing year, 3% to 12% turnover, and concentration below 20%.
• The article interprets low concentration as dispersed ownership but does not establish a return advantage.
• It suggests adding valuation, profitability, liquidity, and ownership-quality measures.
• The sample code appears to apply the turnover range to a concentration field, creating an implementation ambiguity.
• No backtest, trading rules, or performance evidence is provided.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.