2021 1Q Letter to Investors: What the Growth vs. Value Debate is Missing
April 2021: n the U.S., 1Q21 brought a reversal in market leadership from the concentrated gains in “growth” stocks seen in 2020 to those commonly labeled “value.” After outperforming in an environment where traditional value lagged substantially, we were pleased to also generate excess returns in this recent period where growth stocks suffered.
2020 Year-end Letter to Investors
Distillate’s U.S. and international strategies outperformed their respective benchmarks in 2020. In the U.S., substantial outperformance among the largest stocks presented a significant headwind and the resulting rich valuations are making the overall market look somewhat expensive. Much of the risk from valuation appears concentrated in certain segments.
2020 Q3 Letter to Investors: Why We Owned… and Sold Apple
In addition to strategy updates for our U.S. (US FSV) and International (INTL FSV) Fundamental Stability & Value strategies, we look at the evolution Apple Inc. (AAPL) from one of the least expensive stocks in the market at various times over the last decade to one with a premium valuation today.
2020 Q1 Letter to Investors: The Corona-Crisis and Prospects for Recovery
In addition to providing updates on strategy performance and portfolio changes, we look at the current economic crisis brought on by the outbreak of COVID-19 as well as the possible innovation-driven path to recovery. We see our investment process particularly well suited for this environment.
2019 Year-end Letter to Investors: The Market Rally in a Long-Term Context
We provide an update of our U.S. Fundamental Stability & Value strategy’s performance, portfolio changes, and fundamental attributes, and discuss the equity market’s recent performance in a longer-term historical context.
2019 Q3 Letter to Investors: Long-Term Equity Valuations & Looking Past “Factor” Noise
We provide an update of strategy performance and portfolio positioning. We also look at equity market valuations in a historical context, relative to both underlying fundamentals and the valuations of other asset classes.
2019 Q2 Letter to Investors: The Lurking Risk of Elevated Debt Levels
We provide an update of strategy performance and the market environment, discuss the dangers of elevated debt levels, and describe the unintended risks investors might be taking as they seek safety in certain stocks with with low price volatility but increasing levels of debt.
2019 Q1 Letter to Investors: Mismeasuring “Value” and the Risks in Low Beta Stocks
We provide an update of strategy performance so far in 2019, portfolio changes and positioning, as well as our thoughts on the mismeasurement of “Value” as it is commonly discussed and what we believe to be underappreciated risks embedded in low beta stocks.
2018 Year-End Letter to Investors
Our annual review of performance, recent changes to our portfolio, and comments on the outlook for equities in the years ahead.
