Insights

The impact of abnormally low interest rates continues to be the overwhelming driving force in the market. As we discussed at length in last quarter’s letter, this new paradigm has the potential to cause irrational decision making and unintended consequences. One of the pernicious side effects of this ultra-low interest rate environment is the growing […]

We are pleased to report improved performance during the first six months of the year. Our Equity accounts returned 4.73% through the end of June compared to a positive 3.84% return for the S&P 500, and our Balanced accounts returned 6.48% compared to a positive 4.78% return for the benchmark (which is weighted 50% S&P […]

We are pleased to report improved performance during the first quarter of the year and the start of the second quarter. Our Equity accounts returned 3.90% in the quarter compared to a positive 1.35% return for the S&P 500, and our Balanced accounts returned 4.30% compared to a positive 2.31% return for the benchmark (which […]

During 2015 our Equity accounts returned -18.7% for the year compared to a positive 1.4% return for the S&P 500, and our Balanced accounts returned -12.1% compared to a positive 1.3% return for the benchmark (which is weighted 50% S&P 500 and 50% Barclays Aggregate Bond Index). We are profoundly disappointed to deliver the poor […]

For those of us that practice the tenets of long-term value investing, there is no greater frustration than the experience of delivering poor relative returns. During the good times, it’s easy to acknowledge and pay lip service to a period of time in the future when performance will inevitably suffer. And, make no mistake, it […]

During the first six months of 2015 our Equity accounts generated negative returns of -3.69% compared to a 1.23% return for the S&P 500 and our Balanced accounts returned -1.56% compared to a 0.68% return for the benchmark (which is weighted 50% S&P 500 and 50% Barclays Aggregate Bond Index). Performance in the first half […]

Activity during the first quarter was relatively muted with no new purchases or sales. The current market environment – characterized as drifting slowly higher and lacking much volatility – affords limited investment opportunity for opportunistic, value-oriented investors. As we will discuss in more detail below, the ability to deploy large amounts of capital today at […]

After achieving strong returns in 2013 (+34%), our performance this past year significantly underperformed the S&P 500 and our own internal expectations. Our Equity accounts returned -1.43% for the year compared to a positive 13.7% return for the S&P 500, and our Balanced accounts returned -2.2% compared to a positive 10.0% return for the benchmark […]

As recently as three months ago we wrote to you about the lack of investment opportunities due, in part, to the extremely low level of volatility. We went on to write that, “despite geopolitical turmoil and economic uncertainty, the stock market continues to exhibit a steady tranquility in mostly a positive direction. By almost any […]

During the first six months of 2014 our Equity accounts advanced 6.95% compared to a 7.14% return for the S&P 500 and our Balanced accounts returned 5.26% compared to a 5.61% return for the benchmark (which is weighted 50% S&P 500 and 50% Barclays Aggregate Bond Index). Returns in the first half of the year […]