Dreman-Inspired Approach Beats Market by Finding Hidden Gems

In his latest article for Seeking Alpha, Validea CEO John Reese takes a look at his David Dreman-inspired strategy, which is handily beating the market both this year and over the long haul.

“While most of the gurus upon whom my ‘Guru Strategies’ are based are contrarians, one stands out among all the others: David Dreman,” Reese writes. “Throughout his long career, Dreman has sifted through the market’s dregs in order to find hidden gems, and he has been very, very good at it.”

Reese’s Dreman-inspired portfolio has averaged annual returns of more than 8% since its July 2003 inception while the S&P 500 has returned less than 3% per year. In the article, Reese takes a look at some of the criteria that go into the strategy, which investors can access through the Guru Analysis & Guru Stock Screener App in Seeking Alpha’s Investing App Store. He also offers a handful of stock picks that currently get high scores from his Dreman-based model, including AT&T, which gets a stellar 91% score from the model.