blackred/E+ via Getty Images The following segment was excerpted from this fund letter. ENDI Corp. (CrossingBridge Advisors, OTCQB:ENDI) Over the past nine months we have been able to build up a decent size position in ENDI Corp at around $4 per share, or two times earnings net of cash. It has since climbed to above…
MarekUsz/iStock via Getty Images By Albert Grosman & Brian Lund, CFA Picking the Right Odds, Not the Right Horse Market Overview Spotting a secular trend and identifying the winners, as many small cap investors are trying to do with AI- and bitcoin-related beneficiaries, is a time-honored investment strategy that has made investors a lot of…
Rasi Bhadramani By Reed Cassady, CFA, Albert Grosman & Sam Peters, CFA AI Solutions Require Solving Power Problems Market Update The market is focused on the transformative potential of artificial intelligence (‘AI’) but, in our view, has not come fully to grips with the real-world bottlenecks attached to this emerging technology. While markets appear to…
think4photop By Michael Clarfeld, CFA & Chris Eades Cyclical Kick Helps Midstream Lead Equities Market Overview and Outlook A boost for cyclical sectors amid rising oil prices helped energy infrastructure stocks outperform equities in the first quarter. Winter storms dampening production across several U.S. oil fields, a weaker U.S. dollar and lower production levels by…
Jordan Feeg By Garey J. Aitken, CFA, & Michael Richmond, CFA Upgrading Portfolio Quality into Strength – Market Overview After nearly two years of managing through steadily higher policy rates and regular prognostications of economic troubles, investors clearly expected 2024 to be a transition year. Rather than a change, the first quarter of 2024 looked…
Donny DBM/iStock via Getty Images By Reed Cassady, CFA, Sam Peters, CFA, & Jean Yu, CFA The Internal Engine of Returns Market Overview We have previously written about how a lifetime of being a pilot can influence how one approaches portfolio management. The basic principle of flying is to generate lift, while the basic principle…
Trevor Williams By Scott Glasser | Michael Kagan | Stephen Rigo, CFA Paths to Outperformance Broaden Beyond Tech Market Overview The soft landing rally that took hold in November 2023 continued in 2024’s first quarter. The S&P 500 Index advanced in each month of the quarter, bringing the benchmark’s winning streak to five consecutive months…
Hiraman By Jeffrey Bailin, CFA & Aram Green Benchmark Concentration Even More Severe in Small Growth Market Overview Entering 2024, we were hopeful that, after a year of extreme relative underperformance versus large cap peers, conditions were aligning for a broadening market more favorable for small cap stocks. Thus far, it has been more of…
Pogonici By Peter Bourbeau & Margaret Vitrano Staying Disciplined in a Broadening Market Market Overview The positive momentum of 2023 extended into the first quarter as a likely economic soft landing and being past the peak of monetary tightening sent stocks broadly higher. The S&P 500 Index (SP500, SPX) advanced 10.56% for its best start…
Chip Somodevilla Blackstone Has Almost $200B In Dry Powder I updated Blackstone Inc. (NYSE:BX) investors that the easy money in BX was likely over, even as BX surged and attempted to break through the $130 resistance level. However, the market has spoken, as BX has underperformed the S&P 500 (SPX) (SPY) since my previous update…
krisanapong detraphiphat/Moment via Getty Images By Brian Angerame, Jeffrey Bailin, CFA, Aram Green & Matthew Lilling, CFA Small and Mid Caps Attractive Amid Rate Transition Market Overview and Outlook Equity markets generated strong returns in the fourth quarter, bolstered by declining bond yields and a resurgence of optimism that the U.S. economy could indeed achieve…
SEAN GLADWELL/Moment via Getty Images By Reed Cassady, CFA, Albert Grosman, Sam Peters, CFA Deeper Dive on Soft Landing Reveals Risks Market Update What an ending to the year for U.S. equities. The market has become increasingly convinced of a soft landing and inflation is easing toward the Federal Reserve’s target range across total, core…
ismagilov By Charles Hamieh, Shane Hurst, Nick Langley, & Simon Ong Rate Shift Lifts Utilities and GDP-Linked Infrastructure Market Overview Infrastructure and equity markets rallied into the end of the year, driven by a precipitous decline in interest rates as sustained disinflationary trends created an expectation that not only is the Fed finished raising rates,…
Jira Pliankharom By Brian Angerame, Jeffrey Bailin, CFA, Aram Green, Matthew Lilling, CFA Growth Stocks Rise on Rate Cut Prospects Market Overview Equity markets generated strong returns in the fourth quarter, bolstered by declining bond yields and a resurgence of optimism that the U.S. economy could indeed achieve a soft landing. This helped to further…
Edwin Tan By Hannah Barr, Senior ESG Associate| Naveen Jayasundaram, Sr. Analyst – Media & Internet | Mary Jane McQuillen, Head of ESG, Portfolio Mgr. | Hannah Whang, Senior Analyst – Industrials Measuring Impactful Company Engagements An Enhanced Internal Engagement Initiative Engagement to drive positive change in public equities has been a longstanding part of…
tdub303 By Daniel Chu, CFA, Charles Hamieh, Shane Hurst, & Nick Langley Rate Pressures Ease for Renewables, Communications Market Overview Infrastructure and equity markets rallied into the end of the year, driven by a precipitous decline in interest rates as sustained disinflationary trends created an expectation that not only is the Fed finished raising rates,…
Jira Pliankharom By Sean Bogda, CFA, Grace Su, & Jean Yu, CFA, PhD Value Lags Broader International Rally Market Overview International markets generated positive returns in the fourth quarter, as disinflationary data, renewed hopes of an economic soft landing and declining bond yields in the U.S. and Europe overcame concerns over renewed hostilities in the…
Nastco By Albert Grosman and Brian Lund, CFA Keeping Disciplined Amid Low-Quality Rally Market Overview Once upon a time, financial market prices were somewhat tethered to fundamental value. Sure, there were occasional bubbles or manias here or there, in tulips or regional shipping companies or internet stocks, but those were generally isolated to individual asset…
Lemon_tm/iStock via Getty Images Fourth Quarter Market Discussion For value investors, there comes a point in every cycle when it becomes exceedingly difficult to be a contrarian, requiring every ounce of discipline to stay true to one’s principles. That’s where we found ourselves in the fourth quarter. As other investors seemed to buy into the…
Nikada Fourth Quarter Market Discussion The ‘soft landing’ narrative that began to coalesce earlier in the year gained momentum in the fourth quarter, as fixed income investors joined the fray and embraced the notion that a Goldilocks economic scenario may be at hand. With inflation fears moderating, yields on 10-Year Treasuries (US10Y) fell from close…
Lemon_tm By Elisa Mazen, Michael Testorf, CFA, & Pawel Wroblewski, CFA Conditions Improving for Growth Comeback Market Overview International equities rebounded in the fourth quarter, sparked by moderating inflation and plunging bond yields in the U.S. and Europe. The benchmark MSCI EAFE Index advanced 10.42% for the quarter, while the MSCI Emerging Markets Index added…
KanawatTH By Evan Bauman, Peter Bourbeau, Aram Green, & Margaret Vitrano Europe Holding its Own Through Headwinds Market Overview International equities rebounded in the fourth quarter, sparked by moderating inflation and plunging bond yields in the U.S. and Europe. The benchmark MSCI EAFE Index advanced 10.42% for the quarter, while the MSCI Emerging Markets Index…
georgeclerk My bullish thesis on BlackRock, Inc. (BLK) is simple. It’s the world’s largest asset manager with AUM that grew 14% YoY in the third quarter or FQ3 to $9.1T. It has diverse asset classes across several themes and strategies, allowing BlackRock to capture potential upside and mitigate risks. As a result, it can leverage…
Galeanu Mihai By Jeffrey Schulze, CFA The Long View: Here Comes the Sun? Will the Consensus Be Wrong Again? The changing of the calendar affords a natural time to reflect on the previous year and imagine what could be different in the new one. Recent years have ended up differing substantially from consensus expectations. For…
Photomick/iStock via Getty Images DigitalBridge Group (NYSE:DBRG) at a nearly $3 billion market cap is a small alternative asset manager focused solely on investing, building, and operating digital infrastructure assets and businesses. DBRG has a storied history, previously known as Colony Capital before a rebrand, the firm would switch from being elected as a REIT…
To uphold the token’s value, stablecoin issuers often reserve cash or liquid assets. Amid rising interest rates, DWS is poised to manage the reserves for the new stablecoin. Deutsche Bank’s DWS Group, along with Dutch market maker Flow Traders Ltd. and crypto fund manager Galaxy Digital Holdings Ltd, is set to establish a new entity…
This new pilot project from Binance addresses the paramount concern of counterparty risk, while aligning with the risk tolerance of institutional investors. In a groundbreaking move, Binance has accomplished the world’s inaugural cryptocurrency triparty arrangement in collaboration with an undisclosed banking partner, on Thursday, November 30. This pioneering development introduces a unique solution within the…
Pando has named the Bank of New York Mellon as the official administrator of the ETF. Swiss asset management company Pando Asset has joined the race for a spot Bitcoin (BTC) exchange-traded fund (ETF) in the United States. On November 29, the company filed with the country’s Securities and Exchange Commission (SEC), becoming the 13th…
utah778 “Value investing requires deep reservoirs of patience and discipline.” – Seth Klarman It’s been an especially challenging year for small-cap value investors. Last quarter, we discussed risk-taking returning to the marketplace, led by a frenzy in artificial intelligence and mega-cap technology stocks. As the Federal Reserve continued to raise interest rates, offering 5.5% on…
DKosig By Brian Angerame, Aram Green, Matthew Lilling, CFA, & Jeffrey Russell, CFA Amid Growth Pressures, Mid Caps Deliver results. Market Overview Equity markets proved challenging during the third quarter, as the potential for higher-for-longer interest rates chipped away at valuations and raised questions about an economic soft landing. As a result, value stocks supplanted…
metamorworks By Charles Hamieh, Shane Hurst, Nick Langley, & Simon Ong Utilities Fundamentals Intact as Market Risks Rise Market Overview General equities as well as infrastructure retreated in the third quarter of 2023 as inflation, while it has fallen, is still above central banks’ targets, and recent rises in energy prices make it difficult for…
style-photography/iStock via Getty Images By Brian Angerame, Aram Green, Matthew Lilling, CFA, & Jeffrey Russell, CFA Market Overview and Outlook The third quarter was marked by elevated macro influences on portfolio performance. While short-term risk-free rates inched higher, the 10-year U.S. Treasury yield increased 74 basis points, a notable headwind for SMID growth stocks. The…
utah778 Past performance is no guarantee of future results and investment returns and principal value of the Fund will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Current performance may be higher or lower than the performance quoted. Call 800-432-7856 or visit heartlandadvisors.com for current month-end performance….
redtea/iStock via Getty Images Introduction Great-West Lifeco Inc. (TSX:GWO:CA) (OTCPK:GWLIF) is one of Canada’s largest financial services companies. It has a strong focus on health insurance, life insurance, and an increasing focus on retirement and investment services. The company should be seen as a crossover between an insurance company and an asset manager as it…
Boonyachoat/iStock via Getty Images By Scott Glasser, Michael Kagan, & Stephen Rigo Seeking Nature-Positive Revenue Opportunities Market Overview Despite a strong start in July, the S&P 500 Index (SP500, SPX) finished the third quarter down 3.3% as momentum fizzled in August and September. The most likely explanation for the drop was the relentless increase in…
Phiromya Intawongpan By John Baldi, Michael Clarfeld, Peter Vanderlee Dialing Up Valuation Discipline and Dividend Growth Market Overview After a robust second quarter, fueled by tremendous enthusiasm around AI, the S&P 500 Index receded in the third quarter as investors finally accepted that interest rates were likely to be higher for longer. The index fell…
utah778 By Peter Bourbeau and Margaret Vitrano Moving to the Middle as Growth Slows Market Overview Equities took a breather in the third quarter, pressured by rising bond yields, a hawkish turn by the Federal Reserve, and signs of late cycle spending fatigue. The S&P 500 Index fell 3.27% while the Nasdaq Composite declined 4.10%…
In a move that further legitimizes Bitcoin in institutional finance, the global investment giant Franklin Templeton filed a regulatory Form S-1 with the U.S. Securities and Exchange Commission (SEC) on Monday, seeking approval for a spot Bitcoin ETF. The development comes at a time when the race to launch the first US spot Bitcoin ETF is hotly…
According to the Judge, the former OpenSea product manager deliberately used insider information to take advantage of NFT trading. A District Judge has sentenced a former OpenSea product manager to jail for three months for offenses involving insider trading, wire fraud, and money laundering. A judge at the District Court in the Southern District of…
Torsten Asmus/iStock via Getty Images Seeks Growth & Capital Preservation (Performance (%) as of 6-30-2023) QTR YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception Polen Emerging Markets Growth (Gross) -2.36 2.41 -0.49 6.06 -2.93 24.89 21.52 Polen Emerging Markets Growth ((Net)) -2.42 2.30 -0.88 4.98 -4.61 18.23 14.18 MSCI Emerging Markets (Net)) 0.90…
Using Liquidity Strength as a key metric, the expert provided a detailed breakdown of her calculations before coming to her prediction. Wells Fargo Treasury manager Shannon Thorp predicts that XRP will hit between $100 and $500 over the coming four to seven months. This comes following Ripple Labs’ victory over the United States Securities and…
Nikada By Albert Grosman & Brian Lund Investor Optimism Masks Risks of Higher Rates Market Overview Whatever happened to “Don’t fight the Fed?” U.S. equity markets rose across the board in the second quarter, with the Russell 2000 Index up 5.21%, the Russell 1000 Index up 8.58% and the tech-heavy NASDAQ Composite up over 13%….
da-kuk By Sam Peters & Jean Yu The Gift of Extremes Market Overview One of the most powerful tools we have as investors is to think probabilistically rather than act emotionally. We use probability to adapt to new information when our beliefs are challenged, typically in the form of a surprise, and to exploit extreme…
sitox By Evan Bauman, Peter Bourbeau, Aram Green, & Margaret Vitrano Truing Up Growth Exposures on Weakness Market Overview Growth stocks remained in favor in the second quarter, with enthusiasm over generative AI extending gains for mega cap companies in a historically narrow market. The S&P 500 Index rose 8.74% and the Nasdaq Composite climbed…
MadamLead By Michael Clarfeld & Chris Eades Midstream Set to Benefit from Oil Demand Growth Market Overview and Outlook Growing expectations of a Fed pivot and soft landing in 2023 remained the dominant theme in the second quarter, helping U.S. equities, as well as midstream energy stocks, continue to make healthy gains. The benchmark Alerian…