Reviews previous research on contrarian investment strategy (i.e. buying “losers” and selling “winners”) and analyses the results of applying the strategy to US stocks 1928‐1992. Explains the methodology and presents the results, which show no statistically significant holding period returns from the strategy, although selling the “winners” is significant. Considers the implications and limitations of the study and calls for further research.
Dahlquist, J.R. and Broussard, J.P. (2000), "Testing the contrarian investment strategy using holding period returns", Managerial Finance, Vol. 26 No. 6, pp. 16-22. https://doi.org/10.1108/03074350010766701
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