It is our job to uncover stocks that are trading at odds that we believe are too high, given the underlying fundamentals. This analogy holds true for the stock market.
But if all bettors predict a horse to win, the odds will reflect that decision, and the return on investment will be poor. If someone believes that a particular horse is likely to do better than the odds suggest, one will bet on the horse. Patrons go to the track to make bets on horses and the odds change based on those bets – much like the stock market. We believe that there are many parallels between horse racing and stock picking. A race that continues to have some of the biggest upsets in all of horse racing – Man o’ War in 1919, Secretariat in 1973, Rachel Alexandra in 2010, and most recently, American Pharoah in 2015.
This month, horse racing has its “Mid-Summer Derby” – The Travers Stakes at Saratoga Race Course. So, instead of focusing on our usual basketball halftime analogy – let’s visit a new one that incorporates: bourbon, competition, and analytics. And most of all, all of you are very analytical. For instance, we’ve learned that we work with a lot of bourbon enthusiasts. Given everything that has gone on over the last year, we have been very fortunate that we have been able to get back on the road to visit a few of our partners, and during this time, we’ve learned a lot more about each and every one of you. We’re not going to elaborate on performance, but we are very happy with how the portfolio has navigated a slew of different environments over the last year. We continue to believe the stock portfolio is the perfect concoction of valuation, growth, and quality. What hasn’t been difficult is trusting the management teams running all of the companies in this portfolio. It’s been even more difficult over the past year due to the current environment. One of the hardest parts of stock picking is being able to navigate through the noise – deciphering what information is material, and what is not. We review and collaborate about it every single day. But that doesn’t mean we are not spending time on the strategy – in fact, it’s quite the opposite.
Aptus merchant services update#
Our PM team thought an update on the Aptus Compounder Stock Sleeve (15-stocks) made sense, as it has had lower-than-expected turnover thus far in 2021 (only 2 names).
0 kommentar(er)
