GVIP: Strategy Lag To Constrain Upside Capture, Increase Downside This Year, A Hold

Vasily Zyryanov2.22K FollowersFollow5ShareSavePlay(10min)CommentsSummaryGVIP is a passively managed vehicle offering exposure to about 50 hedge-fund darlings selected quarterly using Form 13F filings.I anticipate GVIP to underperform IVV this year owing to its strategy lag resulting from the 13F filings release schedule.Historically, GVIP performed worse than IVV in stressful conditions, including during the pandemic and the 2022 bear market, which welcomes the hypothesis that it will repeat this year.While GVIP has multiple advantages, including outperformance since inception and the GARP tilt, I remain mildly skeptical. The Hold rating is maintained. Jonas Hanacek/iStock via Getty Images It is my expectation that the Goldman Sachs Hedge Industry VIP ETF (GVIP) will underperform the iShares Core S&P 500 ETF (IVV) this year, as its 13F filings-focused strategy has a naturalThis article was written byVasily Zyryanov2.22K FollowersFollowVasily Zyryanov is an individual investor and writer.He uses various techniques to find both relatively underpriced equities with strong upside potential and relatively overappreciated companies that have inflated valuation for a reason.In his research, he pays much attention to the energy sector (oil & gas supermajors, mid-cap, and small-cap exploration & production companies, the oilfield services firms), while he also covers a plethora of other industries from mining and chemicals to luxury bellwethers.He firmly believes that apart from simple profit and sales analysis, a meticulous investor must assess Free Cash Flow and Return on Capital to gain deeper insights and avoid sophomoric conclusions.While he favors underappreciated and misunderstood equities, he also acknowledges that some growth stocks do deserve their premium valuation, and its an investor's primary goal to delve deeper and uncover if the market's current opinion is correct or not.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.