Investment Strategy
We invest with a 3 to 5 year timeframe, hoping to hold each position as long as possible, though knowing markets often overshoot to the upside as they do the downside. Given this reality, we understand that an infinite holding period is the exception, not the rule. We target the 3 to 5 year timeframe because while the market itself tends to price in a long duration, the average annual turnover of US stocks is over 250% per year, and consequently, the average transaction is premised on the quarterly newsflow of a given company rather than the long-term value proposition. This mismatch between the duration of equities and the holding period of the average investor is a crucial source of inefficiency in market valuations. Moreover, longer holding periods provide a tax advantage and minimize transaction fees.
Investment Commentary
Q2 2022 Investment Commentary: Are we heading...
Are we heading for a recession? This is the question on everyone’s mind as markets fell sharply during the second quarter on the heels of high inflation data...
Q1 2022 Investment Commentary: Perspective an...
The start of the year has not been kind to equity investors and especially so to our portfolio. Many of the same trends that persisted through the second half of...
2021 Year-End Investment Commentary
January 1, 2022 marked 10 years since Elliot partnered with Jason to kick off the RGA Investment Advisors reformation and entry into active management. When we...