Core Equity Alpha is a systematic, equal-weighted equity strategy that selects holdings by a composite rank blending growth, value, and quality. Each month the portfolio rebalances, and this note summarizes the resulting turnover and the factors behind it.
Monthly Turnover
On June 1, 2026, the monthly rebalance replaced 10 stocks out of 100.
Turnover in the strategy is driven by changes in each stock’s composite rank, which blends multiple factors including growth, value, and quality. While trades reflect a combination of shifts across all three factors, we attribute the single factor that moved most decisively in the list below.
Additions
- Value: 5
- Quality: 4
- Other: 1 (see below)
Removals
- Value: 4
- Quality: 3
- Growth: 1
- Other: 2 (see below)
*This period’s “Other” trades: One addition and one removal reflected routine changes in our research coverage; one removal followed a delisting.
Spotlight Addition — T-Mobile (TMUS)
TMUS: T-Mobile posted the strongest composite-rank improvement among this month’s additions, driven primarily by an improving quality profile.
- Our research points to stronger forward cash-flow projections alongside contained capital spending, which together strengthen the company’s expected free-cash-flow generation. This quality characteristic is what we view as the prevailing factor behind the addition.
- In its most recent quarterly results, management raised full-year adjusted free cash flow guidance to $18.1–$18.7 billion while holding capital expenditures at approximately $10 billion, and reported a free cash flow margin it characterizes as industry-leading.
- A lower share price over the period provided a secondary value tailwind.
Spotlight Removal — Charles River Laboratories (CRL)
CRL: Charles River Laboratories saw the sharpest composite-rank deterioration among this month’s removals, driven primarily by a weakening quality profile.
- Our research reflects softening sales trends and compressing operating margins, which we view as the prevailing quality signal behind the removal.
- In its most recent quarterly results, the company reported an organic revenue decline of 1.5% and a non-GAAP operating margin contraction of 280 basis points year-over-year, to 16.3%.
- Segment-level softness was concentrated in research models and safety assessment, where organic revenue and margins both declined.
Disclaimers
Note on examples. The securities discussed are shown only to illustrate the systematic ranking process underlying the strategy. They do not represent all securities added or removed this period and are not necessarily the most significant, best-performing, or most profitable of those trades; it should not be assumed that any were or will be profitable. Nothing herein is a recommendation to buy or sell any security.
This document is informational and educational. It is not an offer to sell, a solicitation to buy any security, or investment, tax, or legal advice. Receipt of this document does not establish an investment-advisory relationship between Magnifina and the reader.
The strategy relies on third-party fundamental and analyst data for security selection. The continued availability, methodology, and quality of that data is not guaranteed; changes by data providers or errors in third-party data could affect strategy behavior.
All investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. No representation is made that the strategy will or is likely to achieve results comparable to any discussed.