Thanks Fred! I appreciate the feedback. You ask good questions that I don't have the answers to quite yet. My hunch is that the negative EV stock does outperform the S&P 500 on average, and there is an additional timing benefit from having more neg-EV opportunities when the market is cheap (BTW, right now by that metric the market is quite expensive). Haven't checked the EV/MCap factor, but it would make sense... perhaps in a followup blog post.