Why Rebound Investing?
Anytime stocks go down, I like it. I am a net buyer of stock. When stocks go down, it’s good news — Warren Buffett
An often underrated strategy is buying individual companies during periods of market distress. While buying the dip is almost a reflex for us, we often shy away from buying the underlying companies that are in distress. However, doing this meticulously can yield exceptional returns.Case in point: Covid-19 crash. While the S&P 500 dropped 30% in 2 months following the lockdown, United Airlines lost 76% of its value. Even though the stock is now barely above its pre-pandemic value, if you had invested after the Covid crash, you would have made 2x the return of investing in the S&P 500.This is a frequently repeated trend.
AMD in 2025 and 2026
ASML in 2025
Nvidia in 2018 and 2022
Netflix & Meta in 2022
Rolls-Royce in 2020
Amazon in 2000 and 2022
Investors can’t help themselves. Whenever there is negative news about a company, it’s in our nature to assume the worst-case scenario. Investing when everyone else is skeptical to do so provides the best alpha. This is exactly the goal of Rebound Capital.
And this is not just theory. Our portfolio performance consistently demonstrates the effectiveness of this strategy.
We bought AMD when it was down 33% (Jul’25) and exited with a 62% gain in 3 months. We again bought AMD in Feb’26 when it fell ~20% after its earnings, and the stock was ~2.5x in 4 months.
We got in ASML when it was down 32% (Jun’25) and the stock is up >100%.
In Sep’25, we invested in Google as one of the top rebound stocks, and it’s up ~50% as of Jul’26.
It’s not like we only pick winners. Our calls are tracked publicly and can be accessed in our public Rebound Portfolio.The simple fact is that all great companies stumble. Investing in these companies during their inevitable drawdowns can provide incredible returns during their subsequent rebound. At the same time, not all drawdowns are equal - most deserve the low prices that come after the hype train dies down.
At Rebound Capital, we do deep research to separate the wheat from the chaff. Our motto is “The best opportunities exist in uncertain times.” The only way to invest during an uncertain time is to have conviction. And conviction comes from deep research.
Rebound Portfolio & Live Ratings
We started the rebound portfolio so as to put “our money where our mouth is”. Here, we invest in our highest-conviction ideas, and the portfolio and allocation are available only to our paid subscribers.Please upgrade your subscription to keep updated on all the stocks and get access to our Rebound Portfolio.