Summary by Jane Edmondson, EQM Indexes: -Chances are if you are an ETF investor, you are familiar with ARK's active flagship product, the ARK Innovation ETF. -It has been so successful, with $7.8 billion in assets, it has other ETFs betting against it and others levering it. -The ARK Innovation Fund’s mantra is investing in companies relevant to the theme of disruptive innovation on an active, stock-picking basis. -But given the ETF's recent performance woes, I propose XOUT as an alternative way of capturing disruption.
We simply eliminate the companies that are underperforming or in long-term secular decline, says David Barse, CEO of XOUT Capital. Their goal is to remove companies that they think will be disrupted by technology. They removed JP Morgan Chase based on a low score they calculated. They also took out Bank of America (BAC), Oracle (ORCL), and Chevron ( CVX), to name a few. Tune in for the full discussion with Nicole.
Short-Term vs. Long-Term Discipline: For some, the turmoil of war is also an argument in favor of diversification. “Diversification is a surrogate for knowledge” is how David Barse (@BarseXout), CEO of XOUT Capital puts it.
David Barse, founder and CEO of XOUT Capital, joins ‘Closing Bell: Overtime’ to discuss Meta’s earnings report.
Starting off the week for The Daily Dive this week is David Barse, a returning guest and the founder and CEO of XOUT Capital. We start the interview off by discussing David’s recent Oscar win for the Summer of Soul Movie. The discussion then moves into the markets, addressing whether the Fed has the will to fight inflation, and whether they can avoid disorderly market conditions. Discussion then shifts to his evaluation methods, such as the impact of macro events like lockdowns on his analysis, and how he reads the oil markets in the current geopolitical climate. XOUT Capital is an index firm that focuses on identifying which firms not to own, or “XOUT” in an index. The firms flagship index is based on the top 500 companies in the US, with which the firm uses a proprietary formula to cut-out the bottom 250 names from this list to form an index. The index currently trades as an ETF through GraniteShares, referred to as the XOUT U.S. Large Cap ETF under the ticker symbol “XOUT”.
We are seeking to decipher who is going to get affected negatively from technological change and eliminate those companies, explains David Barse, Founder and CEO, XOUT Capital. Their GraniteShares XOUT U.S. Large-Cap ETF (XOUT) uses algorithms to exclude companies that are not performing up to criteria and look at long term secular decline. They use things such as revenue growth, labor growth, profitability and buybacks for example. They score 500 of the largest market cap U.S. companies and remove the 250 that are not meeting their criteria. Included in the ETF are Apple (AAPL), Microsoft (MSFT) and Alphabet (GOOGL). Tune in for the strategy on this ETF.
Speculation that megacaps should buy Peloton or other beaten-down stocks after their shares crash sounds “silly,” given how strict antitrust regulators are shaping up to be, said David Barse, chief executive officer at XOUT Capital. “Doing buybacks or issuing dividends are the only option as there’s only so much they can spend on research and development,” he said.
Today on the Daily Dive, we sit down with David Barse, a returning guest and the founder and CEO of XOUT Capital. He dives deep on valuations on the broad market (0:48), the outlook of the Microsoft-Activision deal amid pending government review (1:39), the technology sector's recent decline (4:13), and the impact of rate hikes on valuations (5:35). David further discussed what he thinks about airlines voicing safety concern regarding the planned launch of 5G services by telcos (6:16), his own outlook for the market (7:42), and what companies to look out for this year (9:02). XOUT Capital is an index firm that focuses on identifying which firms not to own, or "XOUT" in an index. The firms flagship index is based on the top 500 companies in the US, with which the firm uses a proprietary formula to cut-out the bottom 250 names from this list to form an index. The index currently trades as an ETF through GraniteShares, referred to as the XOUT U.S. Large Cap ETF under the ticker symbol "XOUT".
Don't listen to gloom-and-doomers and miss out on another year of gains! Check out David Barse's interview with David Lin, anchor for Kitco NEWS
The XOUT investment philosophy: Instead of focusing on picking winners, identify which stocks to eliminate or “XOUT". The Top stocks eliminated from the XOUT index are Visa (V), JPMorgan Chase (JPM), and Bank of America (BAC). Overall the GraniteShares XOUT U.S. Large Cap ETF (XOUT) is up 20% in 2021. Tesla (TSLA) is back, however, as the company has significantly improved its results as reported in its recent quarterly financial statements.
Stocks and cryptocurrencies tumbled on Friday on news that a new COVID variant has developed in South Africa. David Barse, CEO of XOUT Capital, told David Lin, anchor for Kitco News, that this is a "buying opportunity."
Today on the Daily Dive, we sit down with David Barse, a returning guest and the founder and CEO of XOUT Capital. David joins us today to discuss the methodology behind the ETF, recent deletions from the fund, and the re-addition of Tesla to the fund. Also discussed is the ever-present topic of inflation, the recent bid of a bitcoin ETF being rejected by the SEC, and developments at NVIDIA.
David Barse comes on Resilient Advisor with Jay Coulter to share the findings from a recent paper on 'The Cost of Underestimating Technological Disruption.'
“They [analysts] are using traditional metrics to compare a company like Tesla to the original car manufacturers and that is just wrong,” he says. “If you apply a different valuation test and look at Tesla’s intangibles like its brand, patents and goodwill, these are huge and not factored into any of the [bear] price predictions.” Barse, who says Tesla is a “technology company masquerading as an auto company,” says the value of Tesla’s data (as collected form its cars to power its autonomous driving software) holds tremendous potential. “The future of its data applications could include Artificial Intelligence (AI), software services and myriad other applications,” he says. “The market is misanalyzing Tesla.”
Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Facebook (FB), Tesla (TSLA), Nvidia (NVDA), Johnson & Johnson (JNJ), UnitedHealth Group (UNH), Walmart (WMT) stocks are among XOUT Capital's top holdings. David Barse weighs in the ETF's performance and provides an outlook for XOUT Capital's third quarter rebalance strategy.
XOUT Capital Founder & CEO, David Barse joins Jill Malandrino on #TradeTalks to discuss a strategy that is focused on identifying which stocks to eliminate out of "XOUT."
News Bites Markets will get 'smacked back' into bull rally, these stocks will prevail - David Barse Kitco NewsShare this article: Markets have “short-term memory” and this correction does not account for the innovation that the leaders of the S&P 500 are producing, said David Barse, CEO of XOUT Capital. Barse told David Lin, anchor for Kitco News, that “This is the same issue that has occurred in the first quarter of this year where a slight uptick in Treasury yields seems to cause a deflation of everything that’s innovative.”
David Barse, Founder and CEO of XOUT Capital, discusses identifying losers in the market. He talks about GraniteShares XOUT US Large Cap ETF (XOUT), as well as shrinking S&P 500 companies and S&P 500 Index Leaders. He then goes over why tech stocks continue to lead over time, highlighting Tesla (TSLA) and mentions the XOUT ETF strategy.
Yahoo Finance reissues the PR Newswire press release on XOUT's latest whitepaper.
"Investors are underestimating the rapid pace of technological disruption and its impact on companies across industries. While virtually all investment strategies today focus on identifying thriving companies, not owning those left behind by technological change presents investors with a compelling opportunity to generate alpha." - XOUT Capital®. "XOUT seeks to capitalize on technological disruption by eliminating companies in its investable universe that are unable to adapt and thrive in an evolving technological and economic landscape."
Art by Woshibai David Barse chats with Larry Light on potential disruptors To David Barse, founder and CEO of XOUT Capital, health care is a prime area in need of technological help. Many critics have lambasted the medical establishment’s antique ways in everything from diagnostics to administration. A good remedy is fast-growing Teladoc Health, which provides online doctors’ appointments and other medical care, he said. The pandemic has given the company a boost, with the stock rising 14% since the start of the nation’s lockdown in early 2020, as revenue doubled. The stock is a favorite of market guru Cathie Wood, Barse pointed out.
Photo credit: Estelle Harris as Estelle Costanza, Jason Alexander as George Costanza, and Jerry Stiller as Frank Costanza in “Seinfeld.” Photographer: Margaret Norton/NBCU Photo Bank/Getty Images “I don’t see many metrics that justify the stock’s jump,” said David Barse, chief executive officer of Xout Capital, which sold its position in Netflix following the most recent report. “I’m a fan of ‘Seinfeld,’ but we don’t know what it will mean for the company’s ability to drive subscribers.” Netflix is about 2% below the average analyst price target, a sign there could be limited potential for further gains, especially in comparison to other names in the streaming-video space. Walt Disney Co., Discovery Inc., ViacomCBS Inc., and streaming platform Roku Inc. all have double-digit upside based on this metric....
A 24-year investing veteran names 6 long-standing legacy stocks that are landmines to avoid as technology upends their industries — and details 3 sectors that offer the best upside
The XOUT U.S. Large Cap ETF investment philosophy: instead of focusing on picking winners, identify which stocks to eliminate "XOUT". Recent XOUT'ed out stocks are TSLA, JPM, and BAC. David Barse, the founder and CEO of XOUT Capital, says that they seek to identify companies in long term secular decline as a result of technological disruption. He weighs in on the biggest contributors this quarter: Apple (AAPL), Facebook (FB), and Google (GOOG).
Play XOUT ETF & Be Exposed to High Potential Large-Cap Stocks
Investors Watch Tesla (TSLA) AI Day for Next Growth Milestone | NASDAQ
The XOUT ETF (XOUT) has eliminated the underperformers in the S&P 500. Some of those eliminated include Tesla (TSLA), Walt Disney (DIS), and JPMorgan Chase (JPM). David Barse, Founder and CEO of XOUT Capital, examines the latest rebalancing of the XOUT ETF. He mentions its top holdings which include Apple (AAPL), Microsoft (MSFT), and Amazon (AMZN).
David Barse Joins Steve & Jay as they talk about MEME Stocks.
A wave of technological innovations in the automotive, entertainment, and consumer finance sectors have for now, dethroned Tesla, Netflix, and Mastercard in their respective spaces, said David Barse, CEO of XOUT Capital, adding that the fears around COVID's Delta Variant were a "false alarm." The XOUT ETF excludes "loser" stocks from the broad market index and includes only stocks that have the highest score based on seven quantitative metrics, including revenue growth, hiring growth, capital deployment, and profitability. Speaking to David Lin, anchor for Kitco News, Barse said that these companies, once the "disruptors" in their sectors, are now being "disrupted" by advancing competitors.
Joining us on the Daily Dive today is David Barse, founder and CEO of XOUT Capital. David joins us this afternoon to discuss some of the hottest stock names, including meme stocks such as AMC Entertainment, as well as the always hot Amazon and Tesla. Within, David also opines on the regulatory risk associated with big tech firms.
There are very few fundamental challenges to the equity markets right now, said David Barse, CEO of XOUT Capital. Speaking with David Lin, anchor for Kitco News, Barse said that "I just believe that unless there is another unforeseen event, like a virus that spreads across the globe, or some kind of disaster occurring, there won't be a market crash that folks are looking for."
XOUT ETF current stay-away stocks are Coca-Cola (KO), PepsiCo (PEP), and Walt Disney (DIS). XOUT Capital's founder and CEO, David Barse, says that now is a compelling time to increase exposure to select and large-cap U.S. equities. He also weighs in on how inflation is impacting fund strategy and names. Finally, he provides his stock pick - Adobe (ADB).
John interviews David Barse, founder of XOUT Capital (an index company) and DMB Holdings (a private family office). John talks to David about assessing the tech-driven disruption coming for just about every industry, the future of streaming, and XOUT’s unique approach to building a portfolio: weeding out losers instead of picking winners.
David Barse joins Chuck Jaffe podcast Money Life.
Hear David Barse discuss Cathie Wood’s remarkable calls & the opposing ends of the risk spectrum w/ Raul on the ValueWalk podcast
David Barse, CEO of XOUT Capital, and Peter Grandich, founder of Peter Grandich & Co. join Kitco’s David Lin to discuss the outlook on equities, gold, and Bitcoin. Barse views equities as the main financial instrument to bet on strong market fundamentals. “I'm optimistic that the companies are going to continue to find ways to grow, and want to own the common stocks of those companies, that are going to successfully navigate through the future. So, my bull [case] is more, really an optimistic long-term fundamental outlook, and if you have that outlook, you have to be exposed to equities. That is the only asset class to be exposed to, to get that kind of exposure,” Barse said.
David Barse joins Raul Jordan Panganiban, ValueWalk's ValueTalks podcast to discuss XOUT.
The happiest place on earth, Disney, may not belong in your portfolio.
David Barse joins Jay Coulter from Resilient Advisor Show to discuss XOUT and the latest rebalancing.
The founder and CEO of XOUT Capital, David Barse, says that the index identifies companies in long-term secular decline as a result of technological disruption. Its top companies include VISA, PG, DIS, BAC, CMCSA, XOM, VZ, KO, ABT, and T.
Great write-up in Seeking Alpha by Another Mountain's Rock Investing about XOUT: Unique S&P 500 ETF Theme Leads To Outperformance
David Barse, CEO of XOUT Capital discusses their GRANITESHARES XOUT U.S. Large Cap ETF (XOUT). He shares that there have been over a quarter and a half full of "head-fakes" and that the company's methodology for it's ETF is to score companies based on long-term fundamentals and secular decline in order to identify stocks to eliminate, not solely focusing on picking potential winners because they appear to be underperforming.
David Barse joins Daniela Cambone of Stansberry Research to discuss XOUT and how we need to forget about picking winners and focusing on excluding.
For our Sunday edition of the Daily Dive, our host Cassandra Leah sits down with that of David Barse, founder and CEO of XOUT Capital. David joins us this afternoon to discuss the methodology behind his unique index, the key metrics used in his due diligence, and the flags that he watches out for with equities. XOUT Capital is an index firm that focuses on identifying which firms not to own, or “XOUT” in an index. The firms flagship index is based on the top 500 companies in the US, with which the firm uses a proprietary formula to cut-out the bottom 250 names from this list to form an index. The index currently trades as an ETF through GraniteShares, referred to as the XOUT U.S. Large Cap ETF under ticker symbol “XOUT”.
“My response is don’t own single-stock risk,” Barse said, “unless you know more about the stock than the marketplace because it could be that something you have no control over is going to impair your investment.”
David joins The Deep Dive team to discuss XOUT's thesis about why it is important to NOT OWN.
The equity markets will sustain their bull run into 2021, but no company is immune to the challenges of technological innovation and disruption, said David Barse, CEO of XOUT Capital
The founder and CEO of XOUT Capital, David Barse, says that XOUT seeks to identify and then exclude companies that are likely to underperform and does not select companies based on historical performance.
Welcome to another episode of Action and Ambition. Today's guest is David Barse. David is the Founder and Chief Executive Officer of XOUT Capital® and Founder of DMB Holdings, a private family office. He was formerly the CEO of Third Avenue Management for 25 years, a pioneer in fundamental, bottom-up deep value investing. If you like making money, you're going to love this episode.
Why It's Important: XOUT tracks the XOUT US Large Cap Index. One of the pillars of the fund is eschewing stocks based on historical performance and avoiding companies that are ill-equipped to deal with changing, disruptive macro and market trends.
The GraniteShares XOUT U.S. Large Cap ETF (NYSE Arca: XOUT), an award-winning smart beta equity ETF launched by GraniteShares and XOUT Capital®, has amassed over $100 million in assets under management (AUM) in its second year of trading.
XOUT Capital CEO David Barse speaks to Nicole Petallides of TD Ameritrade Network on how the XOUT ETF compares to the overall markets.
David Barse, Founder & CEO, of XOUT Capital, discusses his views on the Active vs. Passive Debate
"The paradigm for us is just avoid losers-just avoid companies that are in disruption" says David Barse of XOUT Capital
XOUT Capital Founder & CEO David Barse joins Jill Malandrino on Nasdaq #TradeTalks to discuss an investment philosophy NOT based on picking winners.
David Barse, Founder & CEO, of XOUT Capital quoted in an article on forbes.com to discuss Tesla's historic S&P 500 debut. "Most of that action should happen today without much of a mechanical hitch: 'The market is pretty efficient when it comes to handling this type of volume and a lot of that technicality,' says David Barse, the founder and CEO of index firm XOUT Capital.
Doubts rise that stock’s boffo performance will keep rolling through 2025, although almighty tech might let it maintain some momentum, savants say.
Great write-up in Barron's on how XOUT Capital LLC picks retailers for the XOUT index fund
The COVID-19 pandemic and social distancing have greatly impacted the way people live and work. As tech innovations and digitization ramp up to meet current demands, the pandemic is quickly shaping up to be the ultimate tech disruptor with wide-stretching and long-lasting effects on the tech market.
Both Sides Now: The Active Vs. Passive Debate Revisited (Podcast).
David Barse, founder and CEO of XOUT Capital, joined the Investing with IBD podcast this week to discuss the current market uptrend.
David Barse interviews with David Lin, Kitco
Former Third Avenue CEO David Barse explains why he moved into the world of passive investing with his recently founded index firm XOUT Capital.
Great Interview with David Barse and Nicole Petallides from TD Ameritrade.
Thank you MarketWatch for the write up on XOUT Capital.
David Barse of XOUT Capital: “Resilience means setting a goal, fixing yourself on what that goal is and doing whatever is necessary no matter the cost or time to complete that goal”
Photo credit: NYSE
Great interview with Alissa Coram of Investor's Business Daily and David Barse.
Great TV segment at Bloomberg TV #ETFIQ with Scarlet Fu discussing passive indexing and how XOUT’s first index excludes the losers.
While traditional investment approaches focus on picking winners, XOUT focuses on avoiding the losers that are being disrupted by technology or secular change.
