Market Insights

Banks in 2008 Versus 2020: This Time Part of the Solution

During the Financial Crisis, banks were nearly responsible for the collapse of the financial system given excess leverage, toxic balance sheets, mismanagement, and questionable business practices. In the years that followed, banks were justifiably blamed for the financial turmoil and faced...

Industry Spotlight: Property-Casualty Insurance for Personal Lines

When consumers purchase insurance for cars and homes (or rental homes), the concept is relatively easy to understand. From an investment standpoint, there are many positive attributes of the property-casualty business model:

Management Access: A Surprising Bright Spot for Investors During Pandemic

As we discussed in an earlier blog post (see here) we place a high premium on direct contact with management while researching potential investments, and also as part of our ongoing work on current holdings. This was the case in a pre-pandemic world, and remains the case today, despite the ongoing...

How Could an Unprecedented Hurricane Season Affect Insurance Stocks?

As we move firmly into hurricane season, the number of storm systems heading toward (or already making contact with) the eastern United States is already breaking records.

Update on Inflation and U.S. Interest Rate Policy

On Thursday, August 27, 2020, Federal Reserve (Fed) Chairman Jerome Powell spoke at the highly anticipated virtual version of the Fed’s annual Jackson Hole conference. In providing an update on inflation, Mr. Powell took a majorly dovish tone and reiterated the Fed’s desire for 2% inflation,...

Playing the Recession Playbook in Defense, Part 2

Last week, we discussed how we have been active investors in the defense industry for 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...