Our Contrarian Call: A Bullish Thesis on the Energy Sector

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Back in December 2016, we discussed our expectation for lower longer-term US interest rates, which we used to justify an aversion to financial stocks. This expectation played out. We also discussed our rotation into the resources sector. We suggested that sometimes rotations can be bumpy, and indeed the last six months has been a bumpy […]

Risk Management 101: Diversification (Easier Said Than Done)

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There are three basic ways to manage the risk of an equity portfolio: Diversify, by owning a collection of stocks from different industries Hedge, by shorting stocks or equity futures Buy insurance, like buying an out-of-the-money put option. The essence of diversification is choosing assets that are not perfectly correlated with each other. The logic […]

If Trump Gets Taxes and Infrastructure, Who Pays, and What Does it Mean for Stocks?

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With the dissolution of health care legislation barely final, murmurers out of Washington seem to suggest tax reform/cuts and infrastructure may be tackled in tandem in a way that attracts bipartisan support. If it comes to pass, it would go a long way in meeting the market’s expectations for pro-growth policies from the new administration. But […]

Quarterly Update: Knowledge Leaders Strategy

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In our new quarterly update report, Portfolio Manager Steven Vannelli, CFA, discusses the investment team’s recent analysis on two topics, including: 1. New portfolio opportunities. Huge innovation in the energy sector – and the US Shale Revolution specifically — has manifested into new portfolio opportunities. The US cost of production of oil has fallen by 50% over […]

Quarterly Strategy Update: A Rotation to Cyclical Leadership?

This quarter we discuss our work navigating a global equity rotation from defensive-driven leadership to cyclical-driven leadership. We analyze economic growth trends and our belief that we are in the closest thing to a synchronized global upturn that we’ve seen in years. We discuss three liquidity shocks are impacting asset prices: China devaluing the yuan, divergent monetary […]