Quant Rating Performance vs S&P500

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How is the Quant Performance in the backtest calculated? 

The backtest states that the total return of the stocks rated as very bullish is 855% while the S&P returned 257%. 

So how is the portfolio of the backtest formed?

Is the portfolio rebalanced at the beginning of each month and investing in the 15/20/30 stocks with the highest quant rating? Or is it rebalanced only every 6 months and investing in the 50 stocks with the highest quant rating? 

It would be really interesting how you come up with the 855% return. 


I took a look at the FAQ at seekingalpha.com/backtest/quant and by reading between the lines, it seems to be a mathematical exercise using the very bullish list for each day from 12/31/2009 thru 07/17/2020.  It swaps out and rebalances every day, holding each stock on an equal basis.  A lot of turnover.  I assume it would have similar results if the adjustments were done monthly instead of daily.


Thanks for the reply. 

So if you consider the costs for daily turnover I guess there is no outperformance. 

So it would be interesting to know if your assumption about the result monthly rebalanceis true or not