Bob Kargenian Quoted in Barron’s Mailbag

Bob Kargenian’s letter was published in Barron’s, a weekly newspaper covering financial information, relevant statistics, and market developments.

In his letter, Bob says, “Nicholas Jasinski correctly points out the edge the S&P 600 enjoys over the Russell 2000 in various areas. It’s estimated that over 40% of Russell 2000 companies are losing money. Though S&P is the only index provider to have a profitability requirement for its size-segmented indexes, Ned Davis Research estimates that nearly 25% of S&P 600 companies also lose money. Earlier this year, GameStop, the meme-stock wunderkind, was part of that index, even though it was losing money. So where’s that profitability screen? I’ve attempted to get an answer to that question from S&P Indices, but reaching its data people is as difficult as trying to make a phone call to China with a rotary phone. Maybe Barron’s editors will have better luck than I did.”

Read Bob Kargenian’s Full Letter (login required).