What else have they got?

Author: Edge Capital

40 posts written by Edge Capital

What else have they got?

That is the question that continues to come up in our discussions with investors as we have talked about the chink in the armor of central banks’ after the recent Japan experience

The Brewing Student Debt Problem

Student loans slowly began to fill the pot of household debt during the turn of the millennia.

There Is A Chink In The Armor

In a post-crisis world, central bankers have been the super heroes swooping in to snatch potential victims from an unseemly fate. However, recent market activity suggests that some are starting to question the “super” powers central bankers really have.

Some Food For Thought

Eyes turn toward another data point in the US this weekend: the Super Bowl. Notoriously superstitious, equity market traders look for every kind of insight imaginable to try to get an edge including this event.

It’s not all negative out there…

The Bank of Japan (BoJ) gave a boost to the market’s animal spirits with an unanticipated cut to the deposit rate on excess cash held above required reserves to a negative interest rate.

Q1 2016 – Quarterly Outlook

Despite the weak start to the year, we remind investors that sentiment can dictate short-term performance, but fundamentals are ultimately responsible for long-term returns. In the accompanying slides, we highlight opportunities for 2016.

Weekly Update – 12/19/2014

As oil prices continued to slip, a desperate Russia with failing solutions to stem the ruble’s slide came out with a surprise interest rate increase from 10.5% to 17%.

Edge Capital Partners Launches Blue Current Global Dividend Fund

Edge Capital Partners, an independent investment advisory firm with approximately $2.5 billion in assets under management, today announced the launch of the Blue Current Global Dividend Fund. The fund, co-managed by Harry Jones and Dennis Sabo, seeks out companies that are growing their dividends, offer an attractive yield, and have the potential for long-term capital appreciation.

Weekly Update – 9/26/2014

The new Apple iPhone is not the only thing that got bent out of shape this week. For what seemed like little truly market moving information, equity markets decided that it was time for a tumble.

Weekly Update – 9/22/2014

The Kingdom remains United for the time being as the referendum for Scotland to separate from the UK was defeated. The issue brought the voters to the booths with a reported participation rate greater than 90% in some areas.

Weekly Update – 9/12/2014

The importance of fiscal policy once again was made clear when Japan released its Q2 GDP results – a negative 7% annualized rate!

Weekly Update – 9/5/2014

Mr. Draghi has now left no doubt. Taking the ceremonial plunge of an additional 0.1% just to prove the point that there is no more room for conventional monetary measures.

Weekly Update – 8/29/2014

After a big month for the equity markets, it was a relatively quiet week.

Weekly Update – 8/22/2014

During the global financial crisis, the US Federal Reserve’s gathering of global central bankers in Jackson Hole, Wyoming transformed from an academic discourse into a platform from which Ben Bernanke set the stage for future monetary policy actions. As the annual meeting convenes again this weekend, Janet Yellen may be hoping to downplay her comments from the market-moving attention that her predecessor’s received.

Money Market Funds Under Fire

Money market funds (MMFs) remain under fire as they try to maintain their role in the liquidity markets.

Weekly Update – 8/8/2014

Geopolitics continued to weigh on equity markets as tensions with Russia mounted.

Weekly Update – 8/1/2014

What a difference a few days can make….While most of July showed equity markets continuing the trend higher, the last few days quickly reversed most markets into the red.

Q3 2014 Outlook: Moderation is a Virtue

“Moderation is a virtue only in those who are thought to have an alternative,” so says Henry Kissinger. Perhaps it is this thought that some global central banks took to heart in recent years.

Hard Times, Easy Money, & Sleeping Well

We thought it timely to revisit our thoughtful white paper – Hard Times, Easy Money, & Sleeping Well – that we published exactly two years ago to summarize our forward looking views and provide for additional summer reading.

Weekly Update – 7/25/2014

In more recent time periods, macro-related news including GDP growth and PMI data have driven market sentiment and accordingly returns. At the mid-way point of the year, however, Q2 earnings have taken center stage. For this reason, we opted to substitute our weekly macro review with an update on earnings from both the broader market and our portfolio companies.

Weekly Update – 7/18/2014

Geopolitics continued to darken this week. Unrelated (hopefully) to the US stepping up sanctions against Russia this week for ongoing support of separatist aggression in the Ukraine, a Malaysia Air airliner was downed near the Russian/Ukraine border.

Weekly Update – 7/11/2014

The export from Portugal this week was not nearly as smooth and sweet as its typical libation. News that Banco Esprito Santo, the 5th largest lender in Portugal, might face losses on loans to its founding family’s related companies resparked Euro-area bank concerns.

Weekly Update – 7/3/2014

In the spirit of the upcoming holiday in the United States, we cannot help but think of a fireworks-related metaphor for the current equity markets. While we would love to say it has shot up like a bottle-rocket, or has been as spectacular as an aerial burst from a roman candle, it would be overstating it. No, the equity markets continue to act like a snake.

Q2 2014 Outlook: Canceling Out the Noise

This is an appropriate metaphor for investing. We must actively work to filter the data we receive so that we can concentrate on what matters and not be distracted by the talking heads.

Evaluating Opportunities in Emerging Markets

As emerging markets continue to develop their capital markets, foreign capital available for investment and economic growth has significantly increased.

Q1 2014 Outlook: One of These Things is Not Like The Other

In the investment world, differences are where value is created. We are not talking about that dangerous phrase “This time it is different.” No, we are talking about finding those little disconnects that others have not quite picked up on or perhaps don’t fully believe quite yet.

Q4 2013 Outlook – Focus on What You Can Control

In the face of these outside influences, we must focus on what we know – that valuation is the guide to good returns. As investors, we can exert our control by being selective in the assets we own. By having a plan yet staying flexible, we will be able to find the path to our long-term investment goals.

Fed’s Pedal to the Metal

Edge Capital’s William Skeean tells CNBC that the bounceback in a lot of sectors have been more rate-sensitive given a change in expectation for yields over the past several weeks.

Q3 2013 Outlook – Back to the Future

The second quarter of 2013 saw an important dynamic shift – the market’s perception of the US Federal Reserve’s posture.

Growing Cash Flow

Edge Capital’s Will Skeean was featured on CNBC on May 13, 2013. The topic of conversation was how investors need to take a long term…

Q2 2013 Outlook – Eyes on the Horizon

In this Quarterly Outlook, we place our comments on recent events into the context of our forward-return frameworks, understanding how each may affect the drivers of risk and return within asset classes over the next few years.

Our Current Thinking On Global Macroeconomics & Financial Markets

There is a lot going on today and below are some thoughts we have on global macroeconomics and financial markets generally. Our focus will be on expressing our opinions in the discussion but will touch on some high level datapoints. We will avoid recounting the litany of data that has come out in recent months and weeks.

Assessing Europe

Europe’s structural challenges mean the region faces a prolonged period of poor economic growth. Despite the generally unfavorable outlook, however, we must be mindful that there are niche opportunities to generate attractive returns.

Brazil: Short-Term Challenges Provide Long-Term Opportunity

Challenges create financial market opportunities and our responsibility as investment advisors is to determine if the opportunities can be monetized and if so, how.

Thinking with Leaders

Last month our Research Team traveled to London, New York, Boston, Dallas, Los Angeles, and San Francisco to visit current and prospective investment managers. These managers invest in fixed income, equities and real assets in both long-short and long-only strategies. During our meetings we discussed the outlook for these asset classes in light of the economy, public policy, and financial regulation.

Brazil: Why, and Why Now

Over the last two years our Research Team has visited Brazil, Russia and China in order to gain a better understanding of the opportunities and risks these markets offer our clients. These economies, which together with India form the “BRIC” group of emerging markets, are increasingly important to global economic growth.

Master Limited Partnerships (MLPs) – Assessing Risks and Returns

As investors have sought assets capable of generating both yield and growth, Master Limited Partnership (MLPs) have attracted significant investor interest recently.

Are We Near a Bottom?

The oldest and most sophisticated investors feel the current bear market most resembles the 1973-1974 Bear Market. What are the implications?

Asset Allocation in Practice

We further illustrate our process in using knowledge and experience to manage portfolios for our clients. The points are an addendum to the views we explained more fully in the Yale Endowment White Paper (July 2007).

The Yale Endowment Approach – Can It Work For Individual Investors?

The Yale Endowment is arguably the most successful investment institution with a 17.2% annualized return from 1986 – 2006. Should wealthy taxable investors replicate their endowment investment approach?