Synopsis

In early 2024, we introduced the “barbell strategy” for stock-picking, balancing AI and high-tech innovation on one end with consumer staples on the other. This strategy combines offensive and defensive plays to achieve superior risk-adjusted returns. So far, it has proven successful, with offensive plays like Nvidia (NVDA) up 138% YTD and defensive plays like Walmart (WMT) up 47% YTD, both outperforming the market. In this CIO Series, we will go into details on how we apply Return on Invested Capital “ROIC” to pick defensive stocks in today’s markets.