August 4, 2020 – There are increasing concerns in the market place regarding the concentration in the S&P500.
We maintain the view that fundamentals are the ultimate transmission mechanism for long term value creation.
The typical market headlines focus on the investment “speculation” chasing the Top 5 companies. However, investors should be more focused on the anemic growth, weak margins and leveraged balance sheets of many other constituents. As a result, we advocate for constructing portfolios that include active managers who are experienced in fundamental analysis and selecting “winners” and avoiding “losers”.
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