Retail Deep Value

Contrarian brick-and-mortar: below liquidation value, buybacks, real estate

Retail Deep Value

Total Return

+27.9%

Sharpe Ratio

0.32

Max Drawdown

-25.2%

Win Rate

50.6%

Alpha

-14.6%

Comp. Score *

0.07

Risk Parameters

Max Allocation4.7%

Stop Loss30.0%

Take Profit10.0%

Max DD Tolerance25.2%

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
BBWI	BUY	55%	40.0% below entry	23.1% above entry	2.0%	TV YH
KSS	BUY	80%	40.0% below entry	30.0% above entry	1.6%	TV YH
BURL	BUY	38%	40.0% below entry	15.9% above entry	3.0%	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 -40% drawdown to return 36% long-term. - Exit rule: Exit if free cash flow turns negative for 2 quarters — value trap confirmed.

Avg 5Y Return

20.3%

Avg 5Y Sharpe

0.09

10Y Return

36.5%

10Y Sharpe

0.07

HODL Composite

0.11

Consistency

60%

Suitable for passive