Core Viewpoint - Day Hagan/Ned Davis Research Smart Sector ETF (SSUS) aims to achieve capital appreciation through a dynamic, multi-sector U.S. equity allocation while emphasizing risk management [1] Group 1: Investment Strategy - SSUS utilizes a quantitative, weight-of-the-evidence framework to evaluate macro, technical, and behavioral indicators, allowing for active allocation across sector ETFs [1] - The portfolio adjusts its concentration based on conviction shifts, with increased allocations to cash or defensive sectors during weakening conditions [1] - Returns are primarily driven by sector rotation and the disciplined trimming of underperforming assets, differentiating it from static cap-weighted benchmarks [1] Group 2: Target Audience - SSUS is designed for advisors managing multi-asset strategies and OCIOs seeking dynamic equity beta within established risk budgets [1] Group 3: Risk Considerations - A key risk to monitor is model-driven turnover and the associated trading costs that may arise during volatile market conditions [1]

Core Insights - The article discusses the best stocks to invest in according to billionaire D.E. Shaw, highlighting the hedge fund's successful navigation through market uncertainties and its impressive returns in 2024 [1][2][4]. Investment Strategy - D.E. Shaw employs a strategy of deep buying during market pullbacks, which has contributed to the recovery of equity markets and record highs despite challenges like US tariffs and trade wars [1][2]. - The hedge fund's investment portfolio reflects a balance between diversification and concentrated bets on transformative companies, indicating a strong confidence in technology and data to enhance returns [4]. Fund Performance - The Oculus fund, D.E. Shaw's second-largest fund, achieved a 4.6% gain in July, doubling its year-to-date return to 9.6%, while the flagship multi-strategy Composite fund gained 1.5% in July, bringing its year-to-date returns to 9.3% [3]. - The multi-strategy composite fund generated an 18% return in 2024, with the Oculus fund soaring 36% [4]. Stock Highlights - AerCap Holdings N.V. (NYSE:AER) reported a robust third-quarter net income of $1.216 billion and adjusted earnings of $865 million, raising its full-year adjusted EPS guidance to $13.70 [9][10]. - Roblox Corporation (NYSE:RBLX) posted third-quarter bookings of $1.92 billion, a 70% increase year-over-year, with revenue growing 48% to $1.36 billion [14][15]. Methodology - The article outlines the methodology for selecting the best stocks, which involved scanning D.E. Shaw's portfolio and analyzing stock performance from the end of Q2 to October 28, along with broader hedge fund sentiment [7][8].