Playing the Recession Playbook in Defense, Part 1

Playing the Recession Playbook in Defense, Part 1

We have been active investors in the defense industry for a number of 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 Act (BCA)
  • Relative...
Read More
A Wild Second Quarter & Outlook for Remainder of 2020

A Wild Second Quarter & Outlook for Remainder of 2020

Coronavirus Pandemic

The COVID-19 global pandemic continued to have massive implications during the second quarter, as cases continued to rapidly rise in the United States. The unemployment rate reached 14.7% in April, and U.S. GDP is estimated to have contracted by over 30% in the quarter after...

Read More
The pandemic poses unique challenges to the restaurant industry.

Pandemic Continues to Differentiate Restaurant Business Models

From publicly traded entities to mom and pop operations, restaurants have been one of the hardest hit industries during the coronavirus pandemic. With some U.S. regions facing a new surge in virus cases, restaurant business models are again under investors’ microscope.

In this blog, we share how...

Read More
Growth Stocks: Widest Valuation Gap in 20 Years

Growth Stocks: Widest Valuation Gap in 20 Years

Multiple expansion has been a tremendous contributor to the outperformance of growth stocks since the Global Financial Crisis. Has it gone too far?

The below chart illustrates the valuation differential between deep value and high growth stocks since the late 1980s. One can see that the...

Read More
Prospector Partners Top 3 Blogs of 2020 (Mid-Year)

Our 3 Most Popular Blogs of 2020

We sincerely appreciate your continued interest and support of our market insights.  Below we recap our three most popular blog posts of 2020.  If there is a topic you would like for us to cover, please contact us.  

As always, we welcome your comments or questions.

Best wishes,Prospector...

Read More
[NEW PODCAST] Entrepreneurship, Firm Culture and a Winning Team with John Gillespie

[PODCAST] Entrepreneurship, Firm Culture and a Winning Team with John Gillespie

Prospector Partners Founder and Portfolio Manager John Gillespie learned some valuable lessons in the process of starting his own asset management firm. Many of those lessons revolved around building a strong team, culture and incentive structure, but these ideas also gave him a new perspective...

Read More
Prospector's Concentration in Financials

Prospector’s Concentration in Financials

The team at Prospector Partners continues to position our funds with large overweights in the financials sector compared with our benchmarks. While this has been a long-standing style bias within our portfolios, it is something we frequently receive questions about and worth revisiting our...

Read More
[PODCAST] John Gillespie on the Prospector Investment Approach

[PODCAST] John Gillespie on the Prospector Investment Approach

Many equity investors tend to be optimists, counting on their portfolio’s winners to offset losers. Prospector founder John Gillespie has a different philosophy. Mr. Gillespie and his team spend just as much time considering what could go wrong with a stock as they do determining what could go...

Read More
Is Value Investing Dead? A Cyclical Analysis

Is Value Investing Dead? A Cyclical Analysis

Is value investing dead? It’s a question that has been posed time and time again over the past few years as growth stocks continued to outperform. Many investors assumed a recession would cause the pendulum to swing back toward more reasonably-valued or undervalued stocks, but given the unique...

Read More
Are Market Cap-Weighted Indices Reflective of the Economy?

Are Market Cap-Weighted Indices Reflective of the Economy?

The equity markets have rallied considerably since their March lows. In fact, the S&P 500 Index has rallied to such an extent (down just 11.1% year-to-date through May 14th) that it barely seems to portray an underlying U.S. economy that just had 33 million people file for unemployment benefits....

Read More

Sign Up To Receive Our Market Insights.

 

 

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