Sports Investing Index: October 2011 Performance

  • Commentary on Performance – October 2011

The Sports Investing Index continued to see red in October, but the bleeding was limited as the Index was down -1.0%.  The Sports Investing Index reached an all-time high in June — but since that time, contrarian sports investing techniques have struggled.  The Index is now down for the year and is at its lowest level since August 2010.  This shows that like any investment or asset class, there are losses as well as gains.

Sports Investing Index performance notes:

  • During October, the Sports Investing Index was -1.0% and was comprised of MLB, NHL, College Football and NFL sports investing action.
  • MLB ended the season on an uptick, while the NHL started the season on a positive note.
  • On the other hand, both college football and the NFL suffered losses in October.
  • November will see decent diversification within the Index with action in the NHL, college basketball and both pro and college football.
  • Please visit Sports Insights for an upcoming article on betting against the Public in college basketball.

Sports Insights publishes 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 – October 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 October September August Year-To-Date
Sports Investing Index -1.0 -14.6 -7.9 -18.9
S&P 500 10.9 -7.0 -5.4 1.3
Govt Bonds -0.6 0.6 2.7 7.9

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. We do not guarantee our data is error-free. However, we’ve tried our best to make sure every score and percentage is correct.