Glamour unwind

Bearish

Expensive + strong momentum + shorts building + accruals deteriorating. Glamour stock about to mean-revert.

PRIMARY SOURCE

Lakonishok-Shleifer-Vishny 1994

Chan-Karceski-Lakonishok 2003

TYPICAL HORIZON

6-18 months

FACTORS USED

momentumvalueshort_interestaccruals

What it means

A momentum-and-story stock at stretched valuation, where sophisticated shorts are adding to positions and the accounting is starting to show accruals deterioration. The combination predicts multi-year underperformance.

Why it works

LSV 1994 glamour side: the most expensive quintile with the best recent performance underperforms the market by 10-15% annually over multi-year horizons. CKL 2003 adds that the "mean reversion" for glamour is gradual, not sudden — tends to be a 24-36 month drift.

Watch out

Timing is the hard part. Glamour stocks can keep running for many months before unwinding. The pattern is more useful as a position-sizing guide (don't go heavy long) than a short-selling trigger.

Live matches

15 tickers firing right now

TickerCompanySectorChangeScore

CBA.AXCommonwealth BankFinancial Services+1.16%44[5–95]HEXA-B.STHexagon ABTechnology+2.15%43[5–95]DRIDarden RestaurantsConsumer Cyclical+1.48%42[5–95]COLO-B.COColoplast A/SHealthcare-0.67%40[5–95]ENEL.MIEnel S.p.A.Utilities+1.51%37[5–95]SGE.LSage GroupTechnology+0.43%37[5–95]WOW.AXWoolworths GroupConsumer Defensive+0.76%37[5–95]HM-B.STH&MConsumer Cyclical+0.57%37[5–95]TRP.TOTC EnergyEnergy+1.08%36[5–95]WES.AXWesfarmers LimitedConsumer Cyclical+0.65%36[5–95]REL.LRELX plcIndustrials+0.72%36[5–95]COL.AXColes GroupConsumer Defensive+1.23%36[5–95]UNA.ASUnilever N.V.Consumer Defensive-0.02%35[5–95]WKL.ASWolters KluwerIndustrials-1.19%34[5–95]NESN.SWNestlé S.A.Consumer Defensive+0.20%33[5–95]

Disclaimer. Pattern matches are research signals, not investment advice. Past performance of an academic effect does not guarantee future returns. Forward-return tracking for Framler's own implementation begins 2026-05-16 after the calibration window closes.