TEJ API

In the investment world, small-cap growth stocks have long attracted the attention of professional investors and fund managers due to their high growth potential and price flexibility. At the core of Gardiner’s strategy is the identification of companies with relatively small market capitalizations, strong earnings growth, and solid fundamentals. He focuses on potential stocks with a price-to-earnings growth (PEG) ratio below 1. To test the applicability of this strategy in the Taiwanese stock market, this study adopts Gardiner’s screening principles to develop a set of quantifiable selection criteria, conducts backtesting on Taiwan equities, and further explores the empirical performance of small-cap growth investing in the local market.

Peter Lynch is a legendary figure in the American mutual fund industry. He is widely regarded as one of the most successful fund managers in history. Beyond his remarkable performance, Lynch is also known for his accessible investment philosophy, which has inspired countless individual and professional investors. Lynch advocates the principle of “invest in what you know,” believing that individual investors have the advantage of observing the world around them and can often identify promising companies before their fundamentals are reflected in stock prices. Using indicators such as the price-to-earnings (P/E) ratio and earnings per share (EPS) growth, Lynch aimed to uncover “undervalued growth stocks.”

Rothman's core investment philosophy is to “buy right and hold tight” or “buy strong and hold long.” He emphasizes selecting financially sound companies with stable and growing earnings, purchasing them at the right price, and holding them patiently for the long term. Without frequent portfolio adjustments, investors can achieve strong long-term returns. This simple yet resolute investment approach reflects Rothman’s practical wisdom and provides a clear, historically validated foundation for the strategy tested in this study.

In the field of investment, the "business cycle" has always been an important reference point. Fluctuations in the overall economy, corporate earnings, and market sentiment all show distinct characteristics during different stages of the cycle. Therefore, being able to grasp the movements of the business cycle can help investors more accurately adjust their asset allocations and gain a relative advantage in the market.

By analyzing the motives behind insider block trades, we aim to explore the relationship between stock prices and insider transfers.