Fallen Luxury

Luxury brands at decade-low multiples: Kering, Coach, Burberry — brand equity doesn't depreciate

Fallen Luxury & Aspirational Brands

Total Return

-2.9%

Sharpe Ratio

-0.19

Max Drawdown

-30.4%

Win Rate

49.1%

Alpha

-24.2%

Comp. Score *

0.01

Risk Parameters

Max Allocation0.0%

Stop Loss30.0%

Take Profit10.0%

Max DD Tolerance30.4%

Rebalanceweekly

Execution Guidance

Order TypeLimit

Entry RuleBuy below SMA200 or at RSI < 35. Value = patience. Don't rush.

TimingSAFE TO BUY. *

ScalingEnter in 3 tranches over 4-6 weeks as price confirms bottom.

Positions — Vol-Adjusted Sizing

Symbol	Action	Vol	Stop Loss	Take Profit	Size	Links
RMS.PA	BUY	28%	34.7% below entry	11.6% above entry	0.0%	TV YH
HESAY	BUY	30%	38.2% below entry	12.7% above entry	0.0%	TV YH
CPRI	BUY	67%	40.0% below entry	27.9% above entry	0.0%	TV YH

▶ For Passive Investors (Buy & Hold)

This strategy has moderate long-term potential but requires monitoring. - Take profit: Rebalance when any position exceeds 2x its target weight. Trim back to target, redeploy to underweight positions. - Stop loss: NO price-based stop loss. This strategy recovered from -36% drawdown to return 130% long-term. - Exit rule: Review annually. Exit if strategy underperforms its benchmark for 3 consecutive years.

Avg 5Y Return

74.1%

Avg 5Y Sharpe

0.44

10Y Return

130.3%

10Y Sharpe

0.32

HODL Composite

0.41

Consistency

82%

Suitable for passive