Elliots ' Pepsi Take: Weak Fundamentals Hidden by Macro Tailwinds
1. The silent shift that could hurt equities
2. KWEB vs. QQQ - time for a pause?
3. AUDNZD - bullish fundamentals but too far, too fast
Quant Insight has no advice for Elliott on how to turn Pepsi around.
But on one thing we agree: PEP’s fundamentals have been weakall year.
Our Macro Factor Equity Risk Model (MFERM) breaks down 2025’s returns into macro vs idiosyncratic.
· idio has been a drag all year
· the only reason Pepsi is now flat YtD is thanks to macro tailwinds
· credit spreads, real yields and the curve shape did the heavy lifting
Qi's MFERM (Macro factor Risk Model for Equities) protects your pure-alpha mandate by:
· explaining unexplained P&L in real time
· flagging hidden macro risks before they bite
· signalling when to lean into your best ideas...and when to pull back
