The So-So Returns of Losers in January 2013

In a previous blog, I wrote about the strategy of buying the previous year’s losers and selling the previous year’s winners.  So how did the strategy do in January 2013?  Not so well, but it didn’t hurt either.  The long-short return was 4.44%.  Two companies in the loser portfolio were gone by the end of January.  One was Theratechnologies (THER), which was delisted from Nasdaq but continued to trade.  The other company was Lodge Net Interactive (LNET), which received a cash infusion and is now in Chapter 11 bankruptcy restructuring.  Common equity holders, according to company reports, lost their equity.