Sports Investing Index: April 2011

  • Introduction:

Sports Insights will be publishing a Sports Investing Index to reflect the performance of applying contrarian value approaches to the major US sports marketplaces.  The origins of the Sports Investing Index were published in our book, “Sports Investing: Profiting from Point Spreads.”

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Sports Investing Index Details

  • The Sports Investing Index is based on Sports Insights Square Plays. (Square Plays are the day’s most lopsided games in terms of the public betting trends)
  • Additional indexes and benchmarks may be developed over time.
  • Inception: 2003
  • Index performance will be published monthly.
  • Sports Covered:  NFL, College Football, NBA, College Basketball, MLB, NHL

Other Index Features

  • Investable – Sports Insights Members are able to invest in the index by following Sports Insights Square Plays.  Sports Insights generally publishes its Square Plays at least one hour before sporting events.
  • Each Square Play will represent a play made while risking 1% (each unit represents 1% at risk per play). 
  • Represents a strategy of investing in the US sports marketplace using a contrarian value approach.
  • Inherent return — based on research, there appears to be an inherent return in the sports marketplace based on a systematic, contrarian approach to the sports marketplace.

Figure 1: Sports Investing Index (August 2003-April 2011)

Recent Performance

Below is recent performance for the Sports Investing Index — along with other financial index benchmarks, including the S&P 500 and long-term US government bonds.

Table 1: Index Performance (2011)

Index April March Year-To-Date
Sports Investing Index +15.7% +0.7% +12.7%
S&P 500 +2.9% 0.0% +9.0%
Govt Bonds +1.7% -0.3% +0.3%

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Disclaimer
We do not guarantee that the trends and biases we’ve found will continue to exist. It is impossible to predict the future. Any serious academic research in the field of “market efficiencies” recognizes that inefficiencies may disappear over time. Once inefficiencies are discovered, it is only a matter of time before the market corrects itself.