An Abundance of Speculation: 2021’s Rise of Risk Assets

An Abundance of Speculation: 2021’s Rise of Risk Assets

Last week* we reflected on the trillions of dollars of government stimulus and monetary support that has left the United States awash in cash.

The result of all of this has undoubtedly aided the rise in risk assets during the first few months of 2021, and has led to some speculative market...

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Reflecting on an eventful start to 2021 and thinking about what may be around the bend.

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...

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Upside Participation, Downside Risk Mitigation

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...

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Questions We Ask Before We Invest

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...

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Tips on How to Approach Value Investing

Tips on How to Approach Value Investing

Prospector approaches value investing from a credit perspective, with an emphasis on value-based principles and bottom-up fundamental analysis.

Our in-house, deep dive research is key to our approach, focusing on regulatory and statutory statements when available, in addition to GAAP.

We look at...

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The Path to Value Investing with Prospector Partners PM Steve Labbe

[PODCAST] The Path to Value Investing with PM Steve Labbe

After graduating with a degree in mathematics and pursuing a job as a teacher, Steve Labbe could have never predicted he would spend the next 16 years working for a sell-side research firm and eventually become a portfolio manager at Prospector Partners.

Like many people, his non-traditional...

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Exploring similarities between the dot-com bubble and the recently rally in Reddit meme stocks and cryptocurrencies.

Reddit Traders and Things That Remind Us of the Dot-Com Bubble

If you were working in the investment industry during the late 1990s, what were some of the most excessive, unreasonable market events you remember? Here are some that may jog your memory:

  • Mark Cuban’s Broadcast.com (known as AudioNet prior to the name change), which primarily streamed...
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[PODCAST] The Prospector Flavor of Value Investing with PM Jason Kish

[PODCAST] The Prospector Flavor of Value Investing with PM Jason Kish

On a daily basis, investors are exposed to a lot of numbers and a lot of information. But it should be known that portfolio evaluation goes beyond just the stats.

Behind every portfolio is a person with a story. How did they get to where they are today? What was the path they took to join the...

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Prospector Partners highlights their top 3 blog posts of 2020.

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...

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After Tesla stock’s 500% increase in 2020, it is now valued higher than Warren Buffet’s Berkshire Hathaway.

A Remarkable Chart: Tesla vs Berkshire Hathaway

Of the many charts illustrating the enormous run-up of growth stocks in 2020, the chart below may take the cake.

Tesla (TSLA) began the year with a market capitalization under $100 billion, and by November 25th had a value of over $500 billion – a five-fold increase. As of the writing of this...

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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. 

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