Building a Rebound Portfolio

Welcome to Rebound Capital. Here we conduct deep research into beaten-down stocks and study companies that made a successful comeback. Subscribe for free and join 4,400 other investors to make sure you don’t miss our next briefing:

An often underrated strategy is buying individual companies during periods of market distress. While buying the dip is almost a reflex for us, we often shy away from buying the underlying companies that are in distress. However, doing this meticulously can yield exceptional returns.

Case in point — Covid-19 crash. While the S&P 500 dropped 30% in 2 months following the lockdown, United Airlines lost 76% of its value. Even though the stock is now barely above its pre-pandemic value, if you had invested after the Covid crash, you would have made 2x the return of investing in the S&P 500.

This is a frequently repeated trend.

Investors can’t help themselves. Whenever there is negative news about a company, it’s in our nature to assume the worst-case scenario. Investing when everyone else is skeptical to do so provides the best alpha. This is exactly the goal of Rebound Capital.

I founded Rebound Capital after five years as an analyst to identify high-quality companies undergoing drawdowns. On average, our buy recommendations have doubled the returns of the S&P 500. This is just the beginning, and I want to take it further:

Starting next month, Rebound Capital will transform into a full investment platform.

Here’s everything you will get:

Mark your calendar right now — The launch will be on August 2nd, 3 pm EST.

Right now, we are inching close to 5,000 investors at Rebound Capital. Only 1% of you (~50 seats) will be eligible for the early bird pricing of $397/year ($33/per month).

Once these 50 spots are filled, prices will go up ($497/year), and you’ll never be able to buy a subscription at these low prices again.

This is our bread and butter. We spend hundreds of hours conducting in-depth research into companies and condense it into a 10-minute read for you. On average, our buy recommendations have doubled the returns of the S&P 500. Here’s our deep dive on The Trade Desk, which has returned 3x that of the market.

In some rare cases, an entire industry will be in a drawdown. Just three years ago, the Semiconductor industry was in a cyclical downturn. Now it’s up 166% from its lows. We do the legwork so that you can stay updated and get in during the downturns. Here’s our investment thesis on GLP-1.

Just buying a stock is never the whole story. You have to constantly keep on top of the news and earnings calls to make sure that your original thesis hasn’t changed and that the management is still competent.

Here’s our coverage on ASML (a buy recommendation) after the stock went down 10% — We don’t shy away from covering a stock because it’s down after our call. Transparency is how we do everything.

Every company goes through periods of confidence crisis where investors write them off. While not all drawdowns are equal, we maintain a watchlist of high-quality companies to identify when they are in a drawdown and share them with you.

Those who do not learn history are doomed to repeat it.

It’s essential to learn and understand what happened to companies that rebounded successfully so that we can identify the same trends in current companies that are in a drawdown. At its bottom, Rolls-Royce had lost 88% of its value. Then it made an incredible comeback.

Subscribers to Rebound Capital will also have access to live chat, where we share real-time updates and breaking developments.

We like putting money where our mouth is. Starting in August, we will be investing our capital in the buy recommendations we make and sharing updates and portfolio returns with you.

As you might have noticed, most of our charts are from Koyfin. It’s an incredible platform and the one we use to find and research companies. We reached out to them, and they were kind enough to offer a complimentary 3-month Pro subscription, valued at $250, to Rebound Capital subscribers.

Mark your calendar now — The launch will be on August 2nd, 3 pm EST.

Right now, we are inching close to 5,000 investors at Rebound Capital. Only 1% of you (~50 seats) will be eligible for the early bird pricing of $397/year ($33/per month).

Once these 50 spots are filled, prices will go up ($497/year), and you’ll never be able to buy a subscription at these low prices again.