Archives of INVESTMENT INSIGHTS

We believe that investors should seek to invest in companies that are addressing unmet needs and innovating the products and services of tomorrow. These companies typically exhibit higher rates of growth and growth that is secular, not tied to the ebbs and flows of the broader economy. We find innovation and disruption in all sectors; […]

It has been a year since we started writing about what blockchain means for the future economy and our technology investments. One of my more memorable moments of 2018 was hearing UC Berkeley professor Dr. Dawn Song say: “Blockchain frees AI, and AI can help blockchain reach its full potential.” When we think about how […]

The Russell 2000 Index fell -27% in 4Q 2018 with more than 2 out of 3 stocks falling over 20%, in bear market territory.  This pullback resulted in the Russell 2000 Index dropping -11.1% for 2018, the fourth worst year since the inception of the Russell 2000 Index in 1979. Historically, strong performance for small […]

As investors in equity and credit securities, we watch the credit markets closely as credit risk premia affect equity returns. The leveraged loan market has grown in significance as issuance has increased over the last few years—and their prices have fallen dramatically since mid-November. We believe that quality matters in this environment, so investors should […]

INVESTOR WORRIES DRIVING MARKET VOLATILITY Fed concerns Trade wars Decelerating global growth China’s economic deceleration Falling oil prices Geopolitical instability Simmering debt bubbles OUR APPROACH:  STAYING FOCUSED ON THE LONG TERM What’s driving the current volatility? Rather than one or two factors like economic health or the direction of interest rates, investors are feeling uncertain about […]

In a Rising Interest Rate Environment, Convertibles Offer Lower-Risk Equity and Higher-Returning Fixed Income Exposure KEY TAKEAWAYS Convertibles are more attractively valued than low volatility equity indexes Convertibles have less interest rate risk than straight bonds Record new issuance creates more opportunity for “balanced” managers SMID issues dominate, creating exploitable inefficiencies March 2018 marked the […]

KEY TAKEAWAYS Enterprise interest in blockchain technology continues to broaden Deployment of blockchain technology in supply chain management is accelerating Protocol-level technology innovations will enable broader adoption Interoperability of multiple specialized blockchain protocols is likely future Blockchain continues to capture market attention. Technology specialist, Emmy Sobieski, shares her insights of the unfolding news and trends […]

KEY TAKEAWAY: To potentially generate above-average returns, investors may need to look for “Top Growers,” which were concentrated in smaller-cap companies and in the most innovative sectors over the last three years. As a dynamic growth investor, we believe finding companies that can deliver and sustain earnings growth is a vital part of the investment […]

KEY TAKEAWAYS: February spike in VIX was likely due to trading inefficiencies, not fundamentals. High yield credit spreads remain relatively low and stable, suggesting fundamentals are strong. […]

As early investors in so many of the new, dynamically growing companies with technologies and services that have transformed our lives across so many industries, we are well aware of the opportunities—and disruption—created by transformative innovation. Blockchain technology reminds me of the early days of the internet, the “dot-com era.” It holds lots of promise, […]