Digesting the Challenging Backdrop for Restaurant Fundamentals

We have a long history of investing in restaurants. And, while we are always discerning in our approach, we’ve become even more so recently.

We believe the combination of weak top-line growth, ongoing cost inflation, and weakening pricing power creates a difficult backdrop for near-term restaurant...

Read More

Without a Clear Victory Over Recession, Potential Pitfalls Remain

Between early 2022 and mid-2023, as the Federal Reserve aggressively raised interest rates in an effort to lower inflation, it caused significant uncertainty within stock and bond markets.  

Today, although the rate of inflation has subsided and the consensus appears to be that we have reached an...

Read More

A Surge in Weight-Loss Drugs Caused Investors to Lose Their Appetite for Food-Related Stocks in Q3

Much as artificial intelligence (AI) dominated headlines and investor mindshare earlier in the year, in the third quarter, the market became fixated on the impacts of GLP-1 drugs. These drugs (GLP is short for glucagon-like peptide) include Novo Nordisk's Ozempic and Wegovy, Eli Lilly's Mounjaro...

Read More

Unpacking the Implications: Rising Interest Rates and their Ripple Effects

The market seemed to grapple with a "higher for longer" interest rate environment in the third quarter. The benchmark 10-year Treasury rose significantly (from 3.81% to 4.57%), causing unease for investors, and contributing to the market’s decline during the period. Given the sharp rise in interest...

Read More
Private Market Valuation: One of Our Favorite Tools in the Value Investor Toolbox

The Value Investor Toolbox: Private Market Valuation

Underneath the umbrella of value investing lies a variety of techniques that aim to identify mispriced assets. At Prospector, we heavily utilize two approaches in the value investor toolkit that we believe can add value in any market environment: private market valuation (PMV) and free cash flow...

Read More
Don’t Look to the Income Statement to Gauge Company Health

Don’t Look to the Income Statement to Gauge Company Health

At Prospector, when we evaluate a company our first objective is to assess its downside risk. We do this by looking at the balance sheet first, followed by the cash flow statement, and finally the income statement. This is the inverse of how most equity analysts approach fundamental analysis and...

Read More
Pockets of Opportunity in Industrials

Pockets of Opportunity in Industrials

At Prospector we evaluate all of our investments from the perspective of downside risk mitigation above all else. Across all industries, we target companies with strong, low-leverage balance sheets, dependable free cash flow generation, owner-oriented management teams, and M&A potential. The...

Read More
A Spotlight on Under-the-Radar Financials, Part 2

A Spotlight on Under-the-Radar Financials, Part 2

A question we’re often asked is how, given our consistent focus on the financial sector, we've historically been able to achieve differentiated returns during periods of acute stress in the banking system. There are several factors behind our track record, all of which are a product of our...

Read More
A Spotlight on Under-the-Radar Financials, Part 1

A Spotlight on Under-the-Radar Financials, Part 1

We are firm believers at Prospector that active management should not begin with a benchmark. Our bottom-up approach to portfolio construction and our focus on areas of the market where we possess competitive advantages generally produce stock and sector allocations in our portfolios that differ...

Read More
Achieving Outperformance with Lower Volatility

Achieving Outperformance with Lower Volatility

Prospector’s approach to equity investing has long been focused on the concept of upside participation and downside risk mitigation. As conservative investors, we eschew flashy names with brilliant growth prospects in favor of high quality, value-oriented stocks that can participate in rising...

Read More

 

 

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.

Nothing contained herein constitutes investment, legal, tax, or other advice nor should be relied upon in making an investment or other decision. Any projections, outlooks or estimates contained herein are forward looking statements based upon specific assumptions and should not be construed as indicative of any actual events that have occurred or may occur. 

This site uses cookies to enhance your website experience. By subscribing to our Market Insights, you are agreeing to our use of cookies. See our cookie policy here