US Equities

Quitting is often misunderstood as weakness. But in investing, selling is the overlooked half of decision-making, hindered by biases like sunk cost fallacy or FOMO. In our view, knowing when to walk away is essential for preserving capital and seizing better opportunities.

Uncertainty and volatility in today’s environment have highlighted the benefits of our disciplined Quality Growth philosophy, focused on proven businesses with inherent resilience and durability. Given the narrow tailwinds from the prior two years, select quality companies are attractively valued given their defensive growth characteristics.

As the exuberance we’ve seen over the past few years fades, our Quality Growth team looks to find resilience in industries that are shielded from the effects of tariffs and the volatility around AI.

Investigative analyst Zhen Li recently attended the Shanghai’s second Global Developer Conference. Zhen’s on-the-ground research reveals concerns about the viability and sustainability of DeepSeek’s model given the intense competition in China's AI sector and lack of clarity around monetization of AI models.

Is the tech market’s bull run, much like a steamroller, starting to reverse course? Efficiency gains recently announced by DeepSeek have raised questionsabout the commoditization of LLMs and the potential overinvestment in data centers, shifts that could significantly impact the industry and investors.

The forces driving today’s markets are making it especially hard for investors to find the right balance. How can investors tap into the burgeoning power of AI without taking too much risk? Learn how our Quality Growth team manages risk while maintaining a healthy equilibrium.

How do you manage the impact of market volatility driven by election outcomes? Matthew Benkendorf, CIO of our Quality Growth Boutique, shares ways to help mitigate risks and stay focused on business fundamentals that point to enduring quality.

Investors have been chasing their favorite AI names around the track, without considering how they could sustain their earnings growth for a prolonged period or through a recession. As long-term investors, we aim to remain focused on resilient companies with durable business models, which we believe will finish the race.

Navigating challenging markets requires assessing earnings and revenue trends and digging into balance sheets. But financial metrics alone can be backward looking. A fundamental understanding of industries, companies, and markets can provide important insights that can help avoid hidden risks and identify overlooked growth drivers.

A company’s competitive advantages are referred to as its moat. Far from castles and the countryside, it is important to analyze the strength and durability of a company’s moat before investing. Since moats can be wide or narrow and change over time, competitive advantages must be constantly monitored.

As the landscape shifts, investors may now be exposed to risks that were previously disguised by a prolonged era of accommodative monetary policy. Today, it pays to be wary. A focus on quality can protect in a downturn and provide a smoother ride through the cycle.

Legendary investor Charlie Munger, who recently passed away, followed a simple philosophy of “soldiering on” – persevering through challenging times while also knowing when to seize opportunities. Munger’s wisdom guides us as we manage key risks and seek to find opportunities in 2024.