@article {Fong22, author = {Wai Mun Fong}, title = {{\textquotedblleft}Super Growth{\textquotedblright} Stocks}, volume = {27}, number = {2}, pages = {22--28}, year = {2018}, doi = {10.3905/joi.2018.27.2.022}, publisher = {Institutional Investor Journals Umbrella}, abstract = {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 {\textquotedblleft}super growth{\textquotedblright} portfolio is motivated by the clean surplus accounting model of stock pricing and the robust empirical fact that stocks with high gross profitability are {\textquotedblleft}good{\textquotedblright} growth stocks.TOPICS: Security analysis and valuation, portfolio construction, performance measurement}, issn = {1068-0896}, URL = {https://joi.pm-research.com/content/27/2/22}, eprint = {https://joi.pm-research.com/content/27/2/22.full.pdf}, journal = {The Journal of Investing} }