Market Insights

Investing in Convertible Bonds With Attractive Risk/Reward Characteristics

The post was originally published October 10, 2019 and updated November 21, 2024. 

“We are attracted to the downside protection that a convertible security’s bond feature offers, while also offering the ability to capture a significant portion of the upside in the issuer’s stock, given the...

Reflections on Value’s Outperformance and Our Outlook Going Forward

After the new $1.9 trillion stimulus package was passed along party lines early in the year, the multi-trillions of dollars of government stimulus and additional trillions of monetary support by the Fed left the United States awash in cash. As can be seen in the chart below, the U.S. money supply...

Upside Participation, Downside Risk Mitigation

The volatility of 2020 is still fresh in people’s minds.

On March 12th, 2020, the S&P 500 had it largest single-day percentage drop since the 1987 stock market crash, falling 9.5% in a single trading session.

This infamous record was short lived, as four days later on March 16th, the S&P 500 fell...

Questions We Ask Before We Invest

Successful investing doesn’t have to mimic rocket science. Warren Buffet breaks it down well in his first two rules of investing:

Rule #1 – Don’t lose money; Rule #2- Don’t forget Rule #1!

We adhere to this principle, and our entire investment process revolves around the idea of limiting downside...

Top 3 Blog Posts of 2020

Nervous about the high-flying valuations of technology stocks and interested in more attractively valued sectors? Two of our three most popular blogs of 2020, below, tackled these themes, while the third featured a popular podcast featuring our founder John Gillespie and how he wound up starting...

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...

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...

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 difference...

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 Partners

[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...