• While NVIDIA has driven the market’s valuations higher, we continue to find valuation opportunities that meet our quality standards, leading our U.S. FSV portfolio to its widest free cash flow yield premium in its history. Our Small/Mid QV and International FSV portfolios likewise offer very attractive combinations of valuation and quality. VIEW/DOWNLOAD

  • February 27, 2024: This one pager examined whether small cap stocks are as cheap as is often touted.  The high percentage of unprofitable stocks is significantly distorting traditional PE calculations for small cap indexes, but there seemingly are many excellent values to be had in this segment of the market by being selective and using accurate valuation measures. VIEW/DOWNLOAD

  • The U.S. equity market’s performance was dominated by its largest constituents during 2023.  Looking at the annual performance of an equal weighted index of large stocks compared to a cap-weighted one shows that 2023 was the second worst year for the equal weight index going back to 1930! VIEW/DOWNLOAD

  • 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. VIEW/DOWNLOAD

  • 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. VIEW/DOWNLOAD

  • 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. VIEW/DOWNLOAD