Knowledge Leader Spotlight: Microchip Technology Inc., a Fundamental Analysis

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From time to time we illustrate our analysis of highly innovative companies in a Knowledge Leader spotlight. Today we look at Microchip Technology Inc. (MCHP), a highly innovative semiconductor manufacturer that produces programmable microcontroller products used in autos, computing and lighting, among many other applications. It also produces application development tools for microcontrollers, analog devices, […]

Quarterly Strategy Update: Dynamic Undercurrents

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Since the start of this year, the US Treasury market is signaling a scenario of rising growth expectations and falling inflation expectations, as reflected by the various components that comprise interest rates. In this quarter’s strategy update, Portfolio Manager Steven Vannelli, CFA, explores the following: Monetary policy: We examine the demographic shifts causing people to spend […]

Quarterly Strategy Update: Structural Rotation

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This quarter, we look at two important structural changes that appear to be underway: a normalization in US and European monetary policy and a normalization in crude oil inventories. We expect these two trends to have important ramifications for equity sector leadership trends. In addition, we expect the growth-driven equity leadership that has prevailed for the last […]

Our Contrarian Call: A Bullish Thesis on the Energy Sector

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Back in December 2016, we discussed our expectation for lower longer-term US interest rates, which we used to justify an aversion to financial stocks. This expectation played out. We also discussed our rotation into the resources sector. We suggested that sometimes rotations can be bumpy, and indeed the last six months has been a bumpy […]

Risk Management 101: Diversification (Easier Said Than Done)

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There are three basic ways to manage the risk of an equity portfolio: Diversify, by owning a collection of stocks from different industries Hedge, by shorting stocks or equity futures Buy insurance, like buying an out-of-the-money put option. The essence of diversification is choosing assets that are not perfectly correlated with each other. The logic […]

Getting Back to Basics: A No Frills Review of the State of Corporate Innovation

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As investors, it’s easy to get caught up in headlines about things like Snap’s $23bn market cap or Tesla overtaking Ford and GM to become the most valuable US auto maker. While well-intentioned and interesting, that sort of narrowly focused news coverage gives the impression that innovation is a phenomenon reserved for tech-centric unicorns whose business models […]