The long-term track record of the Core Equity composite deviates greatly from most benchmarks by preserving capital in declining markets while underperforming in times of euphoria. This ability to protect capital in market sell-offs has historically resulted in outperformance with less risk over a complete market cycle. The series of charts below illustrate the net total return performance … Read more
Based on our estimate of fair value relative to the company’s current stock price, we determine each company’s current margin of safety in the Core Equity portfolio. We aggregate the individual company margin of safety based on composite weight within the Core Equity portfolio to determine the overall discount to fair value. On a quarter-to-quarter basis, … Read more
Growth stocks have outperformed value stocks by roughly 16% over the three year period encompassing 2013 through 2015. Year-to-date (2016), value stocks have rallied and reduced some of that outperformance. We measure this relative performance by using the Russell 1000 Growth index against the performance of the Russell 1000 Value index. The difference between these two … Read more
As many of our clients have noticed, the portfolio’s cash position continues to climb. We recently sold our remaining position in ITC Holdings as detailed in a previous commentary note. We also slightly reduced our positions in our two gold royalty companies: Royal Gold and Franco-Nevada. Although both companies are executing extremely well, they are … Read more
We once again updated our estimates of fair value for each company in the Core Equity portfolio. Based on our estimate of fair value relative to the company’s current stock price, we determine the company’s current margin of safety. We aggregate the individual company margin of safety based on composite weight within the Core Equity portfolio to determine … Read more
The Mutual Fund Observer recently published an excellent article that caught our attention (Mutual Fund Observer May 2016). Our mutual fund (MOATX) receives a nice mention, as the author highlights the powerful reasons for including a strategy like ours in an asset allocation. Importantly, his thoughts are consistent with our views on investing, risk, and the … Read more
We recently updated our estimates of fair value for each company in the Core Equity portfolio. Based on our estimate of fair value relative to the company’s current stock price, we determine the company’s current margin of safety. We aggregate the individual company margin of safety based on composite weight within the Core Equity portfolio to … Read more
Your view of value has to be based on a solid factual and analytical foundation, and it has to be held firmly. Only then will you know when to buy or sell. Only a strong sense of value will give you the discipline needed to take profits on a highly appreciated asset that everyone thinks … Read more
We posted our estimates of fair value for each company in the Core Equity portfolio. Based on our estimate of fair value relative to the company’s current stock price, we determine the company’s current margin of safety. We aggregate the individual company margin of safety based on composite weight within the Core Equity portfolio to determine … Read more
We have long held that global central bank policy since the 2008 crisis has had a profound and perverting effect on the U.S stock market. Zero interest rate policy, coupled with massive stimulus programs, has inflated asset prices and dramatically altered market behavior. Bianco Research graphically illustrates this cause and effect, as central bankers clearly … Read more