Sports Investing Index (August 2011 Performance)

The Sports Investing Index was down -7.9% during August, with all of the sports marketplace action coming in Major League Baseball (MLB).  After reaching an all-time high in June, July and August dragged the Index down so that the Sports Investing Index is now down for the year.

  • In August, the Index continued to be dominated by MLB.
  • College football and the NFL will be contributing to the Index in September.
  • Please check out Sports Insights’ annual research on “betting against the public” in college football and the NFL in a few weeks.

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-August 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 August July June Year-To-Date
Sports Investing Index -7.9 -14.1% +4.1% -4.1%
S&P 500 -5.4 -2.0% -1.7% -1.8%
Govt Bonds +8.4 +3.9% -2.3% +14.3%

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.

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.