Over ten years into the current bull market in equities, and likely closer to the end of the economic cycle than to the beginning, investors and corporate management teams are struggling to determine the best places to allocate capital. With concerns over slowing global economic growth, Brexit...Read More
As portfolio managers, we are often asked how we think about risk management at both the portfolio level and the individual stock level. From a bottom-up stock analysis standpoint, we believe the way we view risk is quite different than most investors.
People tend to buy a stock and say, “If...Read More
Asset flows into exchange-traded funds (ETFs) over the past twenty years have been staggering, especially during the post-2008 period. In November of this year, U.S.-based exchange-traded funds surpassed a record $4 trillion in assets1. The graph below illustrates the dramatic growth:Read More
The property-casualty industry is cyclical – a function of insurers being unable to know their cost of goods sold (i.e. claims) until well after the policies were incepted. One can see in the chart below where we are in the cycle1.Read More
Near the end of the third quarter, the overnight funding market (commonly referred to as the “repo market”) exhibited a level of instability not seen since the financial crisis. However, many individuals don’t fully understand the implications of this disruption, nor do they have a full grasp of...Read More
“After a ten-year post-financial crisis period of consistent underlying conditions for equity investing, fundamentals are shifting.”
Since the Federal Reserve (Fed) began employing its accommodative monetary policies, it has fueled a leveraging cycle and we believe it’s a virtual certainty that...Read More
“The national debt is akin to student loans – while not an immediate concern, it could become a major problem.”
Last week, we discussed the state of the corporate leverage. Consumer debt is also an area of concern, but to a lesser extent than corporate debt. Domestic consumer debt...Read More
“Debt, we've learned, is the match that lights the fire of every crisis. Every crisis has its own set of villains - pick your favorite: bankers, regulators, central bankers, politicians, overzealous consumers, credit rating agencies - but all require one similar ingredient to create a true...Read More
“First-level thinkers look for simple formulas and easy answers. Second-level thinkers know that success in investing is the antithesis of simple…Your thinking has to be better than that of others…you must find an edge they don’t have. You must think of something they haven’t thought of, see...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.