Sports Investing Index: May 2011

  • The Sports Investing Index was up +3.3% during May, with most of the marketplace action coming in Major League Baseball (MLB).  There was some action in basketball and hockey, but those sports investing opportunities were limited because the playoff season is winding down in those sports.  In total, the NBA and NHL saw just six plays during the month, while MLB saw 47 plays.
  • The NBA and NHL plays were flat.
  • The MLB marketplace continues to be profitable like it has been since the beginning of the 2011 season.

The Sports Investing Index continues its upward bias, showing that profits can be earned from sports betting — with a systematic and value-driven approach to investing in the sports marketplace.

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

Figure 1: Sports Investing Index (August 2003-May 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 May April March Year-To-Date
Sports Investing Index +3.3% +15.7% +0.7% +16.4%
S&P 500 -1.1% +2.9% 0.0% +7.8%
Govt Bonds +3.0% +1.7% -0.3% +3.3%

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.
  • The Index can be reconstructed by reviewing Sports Insights Square Plays.  Media can receive historical monthly performance by contacting us at Contact Us 

For Media Only: additional information, statistics, high-resolution screen shots, and interviews available -  please Contact Us.

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.