PT - JOURNAL ARTICLE AU - Wai Mun Fong TI - “Super Growth” Stocks AID - 10.3905/joi.2018.27.2.022 DP - 2018 May 31 TA - The Journal of Investing PG - 22--28 VI - 27 IP - 2 4099 - https://pm-research.com/content/27/2/22.short 4100 - https://pm-research.com/content/27/2/22.full AB - Growth stocks have poor average returns and low Sharpe ratios compared to value stocks. The author shows that a portfolio that combines stocks with high profitability and less extreme book-to-market ratios exhibit a negative high-minus-low loading similar to growth stocks but have superior performance across multiple dimensions. The construction of this “super growth” portfolio is motivated by the clean surplus accounting model of stock pricing and the robust empirical fact that stocks with high gross profitability are “good” growth stocks.TOPICS: Security analysis and valuation, portfolio construction, performance measurement