RR: The Year Our Ships Come In (Then Go Back Out, and Return Again… and Pay Us Well for the Coming Boom Cycle…

Republic Risk Portfolio. This semi-annual update discusses various model investment and trading ideas we hope to provide a very Happy New Year come 2026…

This semi-annual update discusses various model investment and trading ideas we hope provides a very Happy New Year come 2026…

Dear Fellow Expat:

It’s that time of year.

We’ve been focused on reversion momentum and mispriced stocks since our conversations began over Thanksgiving with Tim Melvin years ago. Now, it’s time to bring this philosophy to the Florida Republic with momentum, strong fundamentals, and a macro focus.

As we discussed, we look to take advantage of the F, Z, and Graham scores, strong returns on invested capital (ROIC), and other key metrics to discover steep momentum upside while managing risk in the process.

In 2024, there is a prevalent theme: Shipping.

Last year, it was housing that took the world by storm in a very contrarian market. No one wanted to touch housing stocks due to concerns about housing prices.

Strangely, a few housing stocks are still cheap despite their massive runs over the last year.

Notable companies that fit the profile in January 2023 for the screen…