I started tracking 10 valuation dislocations in July. META and Microsoft are already +27pp vs SP500

I started tracking my valuation-dislocation ranking on 24 July.

Two months is obviously too short to say much about LT returns, but I wanted to see which of the original dislocations have started closing relative to SP500.

|Company|Return since 24 Jul|vs. SP500|
|:-|:-|:-|
|META|\~+31%|\+27 pp|
|Microsoft|\~+30%|\+27 pp|
|Adobe|\~+6%|\+2 pp|
|CSU|\~+6%|\+2 pp|
|Netflix|\~+2%|−2 pp|
|Autodesk|\~+1%|−2 pp|
|Tencent|\~+1%|−3 pp|
|Experian|\~−3%|−6 pp|
|RELX|\~−3%|−6 pp|
|Intuit|\~−4%|−8 pp|

META and Microsoft clearly stand out.

Microsoft looks like the cleaner example of a dislocation starting to close. META is a bit different, because a lot of the move came after I had already moved it from #8 to #4 in the August update.

Adobe and CSU are the second tier. Intuit and RELX, my original #1 and #2, have actually underperformed so far.

Main point: price performance and dislocation closure are not exactly the same thing. Fair value can move too.

Only two months of data, so this is just an early check.

**Full note + the rest of the valuation dislocation framework here:**

[https://substack.com/@michaelhillaert1/note/c-345427762?r=6vawcp&utm\_source=notes-share-action&utm\_medium=web](https://substack.com/@michaelhillaert1/note/c-345427762?r=6vawcp&utm_source=notes-share-action&utm_medium=web)

Which of these dislocations do you think the market is getting most wrong?