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
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
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
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
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 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
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
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
At Prospector Partners, we’re winding down the year with thoughts of appreciation, gratitude, and optimism. That’s not to say we were unfazed by the events that contributed to volatility in the markets this past year. However, in the 25 years since founding Prospector Partners, we’ve seen that the...Read More
Flip on financial TV, and you might come across a segment about the so-called death of value investing. After years of outperformance from high-flying and sexy growth stocks, many pundits proclaim a new paradigm for retail investors to pile into. The old school Warren Buffett-style investing...Read More
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