An update on improving bank fundamentals and loan deferrals.

Why the Rally in Bank Stocks Can Continue, Part 1

We recently published a blog entitled Banks in 2008 Versus 2020: This Time Part of the Solution, in which we contrasted the role banks played in the Global Financial Crisis versus the COVID-19 pandemic. We view banks as part of the COVID solution, evidenced by facilitation of the PPP program....

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Reflecting on Q3 2020 and discussing our views on a potential COVID-19 vaccine, value stocks and inflation.

Prospector Partners Quarterly Commentary: Reflecting on Q3 and What Could Lie Ahead

Current Market Environment

The benchmark S&P 500 continued its charge higher during the third quarter of 2020, despite significant increases in COVID-19 cases and certain states such as Florida, Texas, Arizona and California seeing major outbreaks. The market remained focused on the reopening of...

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This week we look at a very attractive capital-light business model: insurance distribution.

Industry Spotlight: Insurance Distribution

Insurance is generally sold “direct” by insurance companies’ paid employees or sold via agents/brokers also known as third party distributors. The economics of an agent/broker are very attractive. They charge a commission/fee for their services (typically a percentage of the premiums) and do not...

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Not only are banks much healthier today than in 2008, but they have been essential in distributing loans that have supported the economy.

Banks in 2008 Versus 2020: This Time Part of the Solution

During the Financial Crisis, banks were nearly responsible for the collapse of the financial system given excess leverage, toxic balance sheets, mismanagement, and questionable business practices. In the years that followed, banks were justifiably blamed for the financial turmoil and faced...

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Property-casualty insurance stocks offer many attractive attributes. As experts in the space, let’s take a closer look at the aspects we value about this industry.

Industry Spotlight: Property-Casualty Insurance for Personal Lines

When consumers purchase insurance for cars and homes (or rental homes), the concept is relatively easy to understand. From an investment standpoint, there are many positive attributes of the property-casualty business model:

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Rapid adoption of web-conference technologies has made it easier to meet with management teams, make investment decisions.

Management Access: A Surprising Bright Spot for Investors During Pandemic

As we discussed in an earlier blog post (see here) we place a high premium on direct contact with management while researching potential investments, and also as part of our ongoing work on current holdings. This was the case in a pre-pandemic world, and remains the case today, despite the...

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Exploring what seven cyclones in the Atlantic could mean for insurance and reinsurance stocks

How Could an Unprecedented Hurricane Season Affect Insurance Stocks?

As we move firmly into hurricane season, the number of storm systems heading toward (or already making contact with) the eastern United States is already breaking records.

As the Washington Post reports, this week there were seven systems working their way across the Atlantic Ocean. This...

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Update on Inflation and U.S. Interest Rate Policy

Update on Inflation and U.S. Interest Rate Policy

On Thursday, August 27, 2020, Federal Reserve (Fed) Chairman Jerome Powell spoke at the highly anticipated virtual version of the Fed’s annual Jackson Hole conference. In providing an update on inflation, Mr. Powell took a majorly dovish tone and reiterated the Fed’s desire for 2% inflation,...

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Meet the Team | Steve Labbe, CFA

Meet the Team | Steve Labbe, CFA

We believe the best partnerships are built upon strong relationships between people. In order for you to get to know us better, here’s the newest addition to our “Meet the Team” blog series.

Meet Steve Labbe, Portfolio Manager and Analyst at Prospector Partners. Mr. Labbe has been with the firm...

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Presidential elections tend to have considerable repercussions on defense stocks.

Playing the Recession Playbook in Defense, Part 2

Last week, we discussed how we have been active investors in the defense industry for years. There are a number of aspects we find attractive in the industry:

  • Solid free cash flow yields
  • Strong growth since the 2015 budget trough following the Iraq and Afghanistan Wars and the Budget Control...
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The views described herein do not constitute investment advice, are not a guarantee of future performance, and are not intended as an offer or solicitation with respect to the purchase or sale of any security. Investing involves risk, including loss of principal. Investors should consider the investment objective, risks, charges and expenses of a Fund carefully before investing. Please review the offering memorandum or prospectus of a Fund for a complete discussion of the Fund’s risks which include, but are not limited to: possible loss of principal amount invested; stock market risk; value risk; interest rate risk; income risk; credit risk; foreign securities risk; currency risk and derivatives risk.

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