Market Commentary

ACM Commentary 2Q 2020

While it’s only been six months into a new year, it seems like a decade has gone by! To say this year has been full of surprises would be a severe understatement. Even in our worst nightmares we are unable to dream up a sequence of – a worldwide pandemic, racial...

ACM Commentary 1Q 2020

MARKET COMMENTARY It is hard to fathom that just 6 weeks ago, on February 19th, the U.S. stock market reached an all-time high when S&P closed at a record 3,386. Of course, a lot has transpired in the weeks since, leaving most of us sheltered in our homes, dealing...

ACM Commentary 4Q 2019

​Last year was a stark contrast to the prior year. While all asset classes declined in 2018, investors enjoyed a bounty of riches in 2019 - every asset class produced positive returns. Corporate profits, on the other hand, exhibited the converse phenomenon. In 2018,...

ACM Commentary 3Q 2019

MARKET COMMENTARY Despite plenty of headline risk and relative uncertainty, the market and asset classes of all kinds continued their upward march in 2019. The chart below depicts the performance of various asset classes across the risk spectrum through October of...

ACM Commentary 2Q 2019

This year started off with a bang for Alamar. Three of our stock holdings were purchased for large premiums. We cannot recall a time when this has occurred over our 10-year history. Given the nature of our holdings – good businesses, growing well, trading at reasonable valuations – we expect more acquisitions in the future.

ACM Commentary 1Q 2019

The U.S. equity markets came roaring back in the first quarter of 2019, shaking off the 4th quarter hangover from last year, due to weakening global fundamentals and decreasing U.S. corporate earnings. In fact, the S&P finished the first quarter within a few percentage points from last September’s highs, as stocks flourished under a more accommodative Federal Reserve (Fed) and renewed optimism about the U.S. economy.

ACM Commentary 4Q 2018

The year 2018 will go down as one for the ages. Every major asset class and equity market around the world declined. After 9 consecutive years of gains, the S&P500 dropped 4.4% last year. For our part, we produced positive results of 2% despite the environment. Since our inception in 2010, the S&P500 is up 11.7% annualized and the Alamar equity strategy is up 12.7% during the same timeframe.

ACM Commentary 3Q 2018

With sustained good earnings fundamentals, the market continued to digest a multitude of fears and marched higher in the 3rd quarter. The S&P achieved a 7.7% return in the quarter and was up over 10.6% on the year. However, as you undoubtedly have realized, things changed dramatically in October, a month famous for Halloween and, even scarier, market corrections.

ACM Commentary 2Q 2018

Despite good earnings fundamentals, the S&P500 is up only 2.6% through the end of the 1st half, probably due to fears of rising rates and possible trade wars. As in prior years, most of the gains have come from the FAMAA (Facebook, Amazon, Microsoft, Apple and Alphabet) stocks. Without these Fab5 the S&P500 would be barely up for the year. Despite never investing in FAMAA stocks our investments have performed well. In fact 16 of the 42 stocks we own, roughly 40% of the portfolio, have more than doubled since we first purchased them. Some of these have tripled or quadrupled and the best performer is now a 16-bagger. None of these investments experienced a smooth ride after we invested in them. Over the years there were numerous large share price declines due to earnings misses and lowered growth expectations. These stocks are not isolated to a particular sector but spread across the consumer, financial, healthcare, energy and technology sectors. We hope the remaining 26 stocks catch up with their brethren over time.

ACM Commentary 1Q 2018

In our past writings have we discussed the critical benefit of a long-term investment time horizon for investors. We pointed out that though stock market volatility can be considerable in any given year, it is smoothed out with the passage of time. As a result, investors with long term time horizons and/or higher risk tolerance levels maintain a significant competitive advantage when it comes to investing. However, of course, many investors struggle with short term volatility. Because of this, we thought we would touch on another tool that can be helpful to investors this quarter – Diversification. Additionally, because diversification plays a critical role in determining whether we as investors ultimately achieve our goals, we will share a useful tool known as a benchmark which can be used to help monitor its relative effectiveness.