Company Events & EarningsCore researchInvalidNew
Seo Underperformance
Updated dailyData needs: mediumshort only
paper
1995
Source
Loughran, T., Ritter, J. R. (1995). "The New Issues Puzzle." Journal of Finance, 50(1), 23-51 (SEO leg).
Read the paper →
In plain terms
Follow-on stock offerings → 3y underperformance.
How it works
SEO issuers underperform ~7-8%/yr over 5y.
Live results
0 times picked on its own · 2 times inside a blend (2 beat the stock) · updated 2026-07-06This strategy is a frequent ingredient in blends that combine a few strategies on one stock. It has contributed to 2 such blended picks (2 of which beat simply holding the stock). Picking it on its own is only one of the ways it shows up.
How its picks scored vs. buy & hold
Each pick is graded on a recent year it was never tuned on, against simply owning the same stock
Where its edge concentrates
Share of picks in each company-size group that beat buy & hold
How often it trades
Active vs. patient. Bars on the left mean it waits for rare setups; bars on the right mean it trades often
Return vs. buy & hold
How much each pick beat or trailed simply owning the stock over the test year (extreme microcap moves trimmed)
Loading substrate evidence…
Data dependencies
- SEC seo filings
A data feed this strategy reads, refreshed on its normal schedule.
- Daily prices
Adjusted-close OHLCV for every US-listed ticker; primary price feed.
Expected edge
- Reported return
- -7 to -8%/yr
- Tested over
- T+6m to T+36m
-7 to -8%/yr over 36m.
Example tickers where this is likely to fire
Illustrative only, the signal fires based on the live data, not a fixed list.
Related families
IPO Underpricing DriftCompany Events & Earnings
Newly-public stocks underperform for 3y, mainly in months 12-36.
Secondary Offering DilutionCompany Events & Earnings
Shelf takedown surprise → stock drops 2-4% in a month.
Private Placement DriftCompany Events & Earnings
PIPE financings → distress signal → -23% over 3 years.
Explore Seo Underperformance on alphactor.ai
See which tickers this family is currently firing on, with live signals and rankings.