We look at the extreme recent outperformance in momentum stocks and the resulting disparities in valuations between certain perceived beneficiaries of artificial intelligence and a growing set of very attractive valuations of high quality companies outside of that space. VIEW/DOWNLOAD
We examine the mechanics of our cash-flow valuation approach, the source of returns for long-term investors, and how systematic rebalancing improves portfolio fundamentals, the ultimate driver of returns. VIEW/DOWNLOAD
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We look at the significant recent contribution to equity returns coming from valuation expansion in a historical context and what it might mean for forward returns. VIEW/DOWNLOAD
December 31, 2025: We examine the significant rise in the capital expenditures of the hyperscalers (MSFT, AMZN, META, GOOGL and ORCL) and other large technology companies, and the growing chasm developing between accounting profits and cash profits. VIEW/DOWNLOAD
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The S&P 500 in our view is expensive, at levels that have proven perilous in the past, and is also concentrated beyond historical precedents. For those who have stayed with the broad market, is it time to move to Value? The reality is that the Russell 1000 Value is only marginally cheaper and also has concentration issues and a legacy of slower underlying fundamental growth. VIEW/DOWNLOAD
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September 11, 2025: We examine U.S. equity multiples across various measures which are currently near the record levels that were last seen 25 years ago during the tech bubble. To achieve historic average returns going forward, we would need to see fundamental growth accelerate well beyond prior peaks. This suggests that growth needs to “Go to Eleven”, to borrow from the 1984 movie This is Spinal Tap, in order for investors to have a chance at achieving average historic equity returns. VIEW/DOWNLOAD
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Since May 2017, the S&P 500 has achieved a 14.3% annualized total return, with a significant portion (4.6 percentage points) stemming from valuation expansion, particularly among the largest stocks. The remaining return came from dividends and free cash flow growth. Distillate’s U.S. FSV strategy, which has nearly matched the S&P 500’s performance over this period, did not benefit from this valuation expansion. Instead, its net-of-fee returns were driven by superior underlying free cash flow growth, primarily due to systematically rebalancing into less expensive stocks. VIEW/DOWNLOAD
13th
13th
Apr, 2026
We examine the mechanics of our cash-flow valuation approach, the source of returns for long-term investors, and how systematic rebalancing improves portfolio fundamentals, the ultimate driver of returns. VIEW/DOWNLOAD
16th
16th
Jan, 2026
We look at the significant recent contribution to equity returns coming from valuation expansion in a historical context and what it might mean for forward returns. VIEW/DOWNLOAD
30th
30th
Dec, 2025
December 31, 2025: We examine the significant rise in the capital expenditures of the hyperscalers (MSFT, AMZN, META, GOOGL and ORCL) and other large technology companies, and the growing chasm developing between accounting profits and cash profits. VIEW/DOWNLOAD
15th
15th
Oct, 2025
The S&P 500 in our view is expensive, at levels that have proven perilous in the past, and is also concentrated beyond historical precedents. For those who have stayed with the broad market, is it time to move to Value? The reality is that the Russell 1000 Value is only marginally cheaper and also has concentration issues and a legacy of slower underlying fundamental growth. VIEW/DOWNLOAD
