Best of Breed: BoB‘n‘Bub

研报英文原文证据摘录

Best of Breed: BoB‘n‘Bub

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Best of Breed

BoB’n’BuB

BoB underperformed ACWI in 2Q26 24 June 2026

In 2Q26 through May 31st, our Global Best of Breed screen (“BoB”) underperformed the Investment Strategy

MSCI All Country World Index (ACWI) by 948bps. High-quality stocks tend to outperform Global

in the long term but can underperform in periods of highly concentrated, speculative, Michael Hartnett

frothy equity markets. Since inception on 5th Apr 2010 BoB has returned 748%, Investment Strategist

outperforming the MSCI All Country World Index (up 262% over same period - Chart 1) BofAS+1 646 855 1508

in 41 out of 65 quarters through 31st May 2026, with superior risk-adjusted returns (a michael.hartnett@bofa.com

Sharpe ratio 0.39 for BoB vs. 0.21 for ACWI). Myung-Jee Jung

Investment Strategist

BoB favors Consumer Discretionary and Staples in 3Q26 BofAS+1 646 855 0389

myung-jee.jung@bofa.com

Of the roughly 4,000 companies in the BofA Global Research coverage universe, 18

qualified for our Global BoB screen in 3Q26. Relative to the MSCI ACWI benchmark BoB AnyaInvestmentShelekhinStrategist

in 3Q26 is notably long consumer discretionary & consumer staples stocks. Full screen BofAS

+1 646 855 3753

of companies in Table 1. anya.shelekhin@bofa.com

BoB favors Quality & Growth JessicaInvestmentGuoStrategist

BofAS

BoB’s methodology uses a strict set of quantitative criteria to screen for high-quality jessica.guo@bofa.com

companies with superior business models and high growth potential, stocks with strong

management, balance sheets, EPS growth, cash flow. The highest-quality companies

generate the best relative returns in the long term and in absolute terms protect against

volatility in the short term.

Chart 1: Global BoB up 688% vs. MSCI ACWI up 238% since inception