03.02.2020
The Lead - "Cash is King"
- According to Empirical Research, free cash flow margins have been the best performing characteristic in the U.S. large cap market over the past one, three, five, and ten year periods.
- As public companies drive efficiencies to attract capital, the bar to be in the top 10% of stocks with high cash flow margins has continued to move higher.
- Most of these companies are in the technology and healthcare sectors, where many of our investment strategies are overweight relative to their benchmark.
- From Empirical Research’s work, it appears quality businesses also make quality investments.
02.07.2020
The Lead - "Have Process, Will Travel"
- Our favorite college basketball team employs a proven defensive framework to help them win championships.
- Sterling Capital has repeatable investment processes that put the odds of success in our clients’ favor.
- Recently, our research provider expanded their databases globally, increasing our conviction that our process can add value, regardless of geography.
01.06.2020
The Lead - "The Equity Market is Not Partisan"
- The performance of domestic equity markets in 2019 “rhymed” with history in year three of the cycle, posting strong returns versus the preceding two years – up over 28% in the case of the S&P 500.
- Election years tend to be the smoothest in terms of quarterly returns and many combinations of political control can lead to solid returns for equity investors.
- Our focus has been on keeping our “eye on the prize” to build portfolios of unique companies at unique prices.
