2023-3Q Letter to Investors: Avoiding Risk
October 11, 2023: Lofty valuations among most of the so-called “Magnificent Seven” stocks place a heavy demand on future growth for those stocks as a group. If history is a guide, failure to achieve those implied growth rates could leave investors sorely disappointed.
Small Stocks, Big Debt Issues
October 1, 2023: Small stocks have big debt burdens and high borrowing costs and interest expense could rise further as debt is refinanced in the current, higher, interest rate environment. This incremental expense is likely to be a significant headwind for many small cap stocks.
2023-2Q Letter to Investors: Expensive at the Top
June 30, 2023: A strong rally moved market levels markedly higher in the second quarter, leaving any angst of the first quarter’s focus on banking turmoil behind. The rally, however, was driven mostly by handful of the biggest stocks that look increasingly rich relative to the market overall.
Distillate Capital Launches DSMC
October 6, 2022: Distillate Capital launches DSMC: The Distillate Small/Mid Cash Flow ETF. It’s the newest addition to the firm’s fast-growing ETF lineup built around the firm’s proprietary measures of quality, risk and value as seen through the lens of free cash flow.
