portfolio Management

A -post collection

In search of value....

As you will see in the following pages, we have been hard art work looking for what are the best values in the marketplace. The October selloff as expected has begun to open up opportunities for us. While we have been saying for quite awhile that a correction was due, and that we would continue to see “growth scares”, we have been very patient at adding equity exposure. Rightly so. Now that the market has hit a generic 10% correction, we deem this level as proper to get a bit more proactive on names. We are not yet calling a market bottom. Frankly, we think there is going to be continued volatility. But, we are now at the point where we begin to prepare for that

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Another growth scare...

With the recent volatility we wanted to share some of our thoughts on what is happening , and how we think about these types of interruptions of the Bull Market. Markets are hard to predict, so we do not really spend too much time on predicting them. What we do is look for powerful trends, innovation, great management teams and undervalued companies. Each and every analyst, portfolio manager or trader that interacts with our capital has the same high bar to achieve. Make sure that the capital invested is allocated in the most optimal long term risk adjusted method as possible. The investments that we own carry a strong combination of accelerating revenue and profit growth along with generally undemanding valuations. The large majority of single names

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A Message From The Yield Curve

The slope of the yield curve informs about the future state of the economy. Post the great recession, the yield curve hasn’t tracked always the “normal” cycle shown in Figure 1. There are two reasons why this is the case and what it means for core fixed income investing. Figure 1: U.S. Treasury and Japanese Yield Curve Compared Source: Bloomberg, monthly data. T-= years before the cycle peak of economic growth, T+ = years post peak and into recession. The first reason is to compare the slope of the U.S. yield curve to Japan. The Japanese curve followed the normal cycle but deviated when deflation took hold (T+2 to T+4, Figure 1). Notably, the U.S. yield curve (orange line) follows the

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