The Leuthold Group

leutholdThe Leuthold Group, founded in 1981, is an independent, top-down, quantitative and contrarian institutional research firm based in Minneapolis, MN that is an affiliate/subsidiary of Weeden & Co. Led by recognized market authority, Steve Leuthold, the research is conducted by a team of analysts. The proprietary research includes technical and quantitative analysis, broad sector and industry group analysis, earnings momentum, supply/demand dynamics, and valuation studies. The proprietary databases enable Leuthold Group to do historical studies not found at any other Wall Street or independent research firm. The models are backed by the confidence gained from years of testing with real money in the real world, since The Leuthold Group also runs an asset management firm which uses its work to arrive at investment decisions. The firm prides itself on providing clients unique insights and perspectives in a timely manner.

Primary Research Publications

The primary research publications are Perception for the Professional and Leuthold’s Groups, both published monthly.

“Perception for the Professional” provides market commentary and analysis, opinion and special studies along with humorous insights.

“Leuthold’s Groups” provides statistical and graphical analysis of our work on over 130 sectors covering over 2,000 stocks.

The Leuthold Group conducts three main areas of research:

  • Market Commentary and Analysis
  • Group Analysis
  • Quantitative Analysis

Market Commentary & Analysis

Perception for the Professional (“The Green Book”) — the flagship monthly publication — takes a broad approach to the investment spectrum and is published the first week of the month. It analyzes both stocks and bonds, discusses an overall asset mix structure, examines the current economy, and includes timely commentary on a variety of other issues from Steve Leuthold and the team.

  • The Research Summary is a slideshow style compilation of the month’s research highlights and is posted within two days of publication.
  • Steve Leuthold’s Audio Commentary of Perception for the Professional is available on CD or download from the website a few days after publication.
  • Steve Leuthold’s Audio Commentary of Perception for the Professional is available on CD or download from the website a few days after publication.
  • Perception Express is a one page email summary of Perception for the Professional sent at the time of publication.
  • In Focus Special Research Studies focus on unique ideas and timely issues, dissect investment implications of current trends, and may also examine specific areas of investment and are produced a couple of times each year.
  • Interim Memos are sent to all clients when market action or Leuthold’s indicators warrant pertinent comments outside of their publication schedule.
  • Inflation Watch is posted mid-month after the CPI and PPI releases and comments on the current assessment of inflation, as well as making projections of future inflation.

Group Analysis

The Leuthold Group conducts group analysis using three separate models, each seeking to identify group leadership using fundamental, technical and quantitative methods. Each of these models is published monthly.

  • Leuthold’s Groups (“The Blue Book”) is the primary group model and serves as the basis for the other group models. Live since 1995, it ranks 150 groups based on the S&P/MSCI sub-industries as well as the thematic and quantitative groups using their Group Selection (GS) Scores. Its universe is composed of 3000 names and includes ADRs.
  • Leuthold’s Small Cap Groups is a domestic small cap model, analyzing 100 groups in a universe of over 2000 investable names using the Small Cap Group Selection (SCGS) Scores.
  • Leuthold’s Global Groups (“The Gold Book”) is a global model, analyzing 67 industry groups in a universe of 5000 investable names using the Global Group Selection (GGS) Scores.
  • Group Insights provides highlights and actionable ideas from the three group models and is posted last in the cycle.

Quantitative Analysis

BenchMarks presents on a quarterly basis “histograms” — graphic representations of stock market historical, intrinsic value relationships. Topics include P/E ratios, Book Value, Yields and Cash Flow, as well as the historical relationship between stocks and bonds.

Weekly Flash Reports provide summaries of The Leuthold Group’s research. Reports include:

  • Major Trend Index Summary is an overview of their multi-factor market indicator.
  • Stock Market Supply/Demand analyzes the money flows of the market, breaking the flows down by style and size.
  • Group Watch reports the best and worst performing groups of the previous week.

REIT Beat is posted monthly and segments the various REIT subsets while ranking over 125 individual issues.

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