We also discusses across you know where we looked at quality of [INAUDIBLE],
It was slightly different you know in bid price announcements drift we did not
bother about quality of We just looked at earnings share price and those which there
was a positive share price and stocks where there was a negative share price.
We did not say how share price came about.
And we went long on those which share priced in analysts positively and
went short on those which share priced analysts negatively and held this for
a while, whereas in accrual we went into the quality awareness.
So we separated this outperformance in earnings
into those which is caused, that part which is caused by cash earnings and
that part which caused by accrual earnings.
The idea here is simple.
The argument is that that part of earnings,
which is given by cash is likely to be more sustainable.
Earnings are likely to be persistent and
hence the stock reaction is likely to be dominant.
Whereas, if the earning and prices driven by accrual,
then that's not likely to be the case.
That's the whole idea behind this cash earnings and accrual earnings.
And the strategy there also is simple.
We go long on stocks, we tell more cash earnings.
And short on stocks, we'd have less cash earnings and hold them for awhile.
That was the accrual trading strategy.
And we saw that it works well in different parts of the world,
we presented our own numbers to you, it seems pretty nice,
and then we went to another center school called G score.
Now G score is a counterpart of F score school, so if you relate G score and
F score, it's called of pertussis of score.
F score close to value stocks,whereas G score it's
applicable to the other half groups of stocks.
So if you're doing stocks into the market to book which is high value or
I know doing high market value by book value,
those which have high market value to book value qualifies to gross stocks.
So we created this G-score, G score which is based on
growth attributes like advertising, R&D, and all that.
And we saw that the G-score,
you know G-score does well in most parts of the world.
So that's another strategy.
One interesting about G-score and
F-score is that if you try applying G-score to the value then it doesn't work.